The welfare loss from monopoly can be seen from the difference in equilibrium between

a.

marginal revenue and marginalbenefit.

b.

marginal cost and marginal benefit.

c.

supply and demand.

Which of the following isnota reasonable argument forgovernment involvement ineducation?

a.

Educationhassome public good aspects, especiallyin ademocracy.

b.

Education is a merit good.

c.

Education is more efficiently produced by government.

d.

Public provision of education has desirable distributional consequences.

A mixed economy is one inwhich

both labor and capital contribute significantly toproduction

both industrial and service sectors are important

a centralized government controls economic activity and produces some military goods and some consumer goods.

both government and private firms play important economic roles.

Question 4

The number of local governmental entities in the United States is roughly

a.

850

b.

8500

c.

850,000

d.

85,00

Question 5

Which of the following questions is much more important in public economics than in other areas of economics?

a.

What should be produced?

b.

How should decisions be made?

c.

How should goods beproduced?

d.

Towhom are goodsdistributed?