罗森 财政学 第七版(英文版) 配套习题及答案Chap004.doc

Test Bank to accompany Rosens Public Finance, Seventh EditionChapter 4CHAPTER 4 - Public GoodsMultipleChoice Questions1.Public goods are characterized bya)nonrivalness.b)excludability.c)the sum of the MRSs equaling MRT.d)all of the above.2.Market mechanisms are unlikely to providea)prices.b)nonrival goods efficiently.c)supply and demand.d)none of the above.3.A pure private good isa)nonrival in consumption and subject to exclusion.b)rival in consumption and subject to exclusion.c)rival in consumption and not subject to exclusion.d)all of the above.4.Commodity egalitarianism refers to commodities thata)are important for most consumers.b)are too dangerous for most consumers.c)should be made available to all consumers.d)are good ideas but never produced.e)are produced in bulk.5.Charging individual prices that are based on consumers willingness to pay isa)government price supports.b)will pricing.c)second tier pricing.d)price discrimination.6.Equilibrium for public goods is characterized bya)MSB = MSB.b)SMRS = MRT.c)MRS = MRS = MRS=MRS = MRT.d)MC = MB.e)MRS MRT = MSB.7.Summing demand curves horizontally sends market _ to individuals, while summing vertically sends market _ to individuals.a)price; priceb)quantity; quantityc)quantity; priced)price; quantity8.Public goods can bea)provided privately.b)provided publicly.c)subject to free rider problems.d)all of the above.9.A _ is a person who wants to enjoy the benefits of a public good without contributing his or her marginal benefit to the cost of financing the amount made.a)free riderb)politicianc)price makerd)price optimizer10.Congestible public goodsa)are nonrival in consumption. b)can not be priced in the market.c)are rival in consumption.d)are never provided by the private sector.11.A private good isa)nonrival in consumption.b)subject to free rider problems.c)subject to exclusion.d)not subject to exclusion.e)none of the above.12.When those that do not contribute to the costs of a public good are denied use, this is a case ofa)exclusion.b)being nonrival.c)price discrimination.d)infeasibility.e)all of the above.13.Which of the following is a public good?a)public defenseb)public televisionc)a libraryd)schoolse)all of the above14.Pure private goods are supplied througha)the market.b)government taxes.c)merit pricing.d)none of the above.15.School vouchers area)provided by the government.b)provided by private organizations.c)public funds to be used for private tuition.d)all of the above.Discussion Questions1.Suppose there are two individuals with identical demand curves characterized by the equation Q = (33/2) (P/2). What is market demand if these demand curves are added horizontally? Vertically?2.Redo problem 10 of Chapter 4 in your textbook. Assume now that the marginal cost of getting snow plowed is now $24.3.Use the answer you found when adding market demand curves vertically in Question1 above to find the market equilibrium quantity if the market supply is constant at 10.4.Suppose you are given the following demand curves: Q = 32 P and Q = 16 (P/2). Add these two demand curves vertically and find the market demand curve.5.Suppose there is a public good that has market supply characterized by the equation X = (P/3) (32/3). Suppose further that market demand for this good can be characterized by the equation X = 25 P. Find the equilibrium quantity of the public good that will be supplied.True/False/Uncertain Questions1.The free rider problem causes less than optimal production of a public good.2.Pure private goods are nonrival in consumption.3.Most goods that are nonexcludable are pure public goods.4.Vertical summation of demand curves yield results equivalent to those of horizontal summation.5.Increasing the quantity of a pure public good can be done at zero cost.6.Demand curves for pure public goods satisfy the law of demand.7.Pure public goods involve positive externalities.8.Increases in spending on education will lead to an increase in student performance.9.Privatization means taking services that are supplied by the government and turning them over to the private sector for provision.10.Private goods are always provided by the private sector.Essay Questions1.You have read that the free rider problem affects equilibrium in a public good context. Explain how this situation can be modeled as a prisoners dilemma game.2.Di