Chapter 9 Quiz
Chapter 9
GDP is the market value of all the final goods and services produced by all firms located in the United States in a given time period
Marginal external cost
The cost of producing an additional unit of a good or service that falls on people other than the producer.
Efficiency
Efficiency is achieved when the marginal social benefit equals the marginal social cost.
Which of the following best describes an externality? An effect of a transaction felt by someone other than the consumer or producer
Pollution is an example of a ____ externality? Negative production
Which of the following creates an external cost? Second-hand smoke sulfur emitted from smoke stack garbage on the roadside
The cost of producing one more …show more content…
If the government leaves education to the private market, ____ (overproduction; underproduction) occurs. A payment that the government makes to private producers that depends on the level of output is ____ (a subsidy; public provision). The property rights of the creators of knowledge and other discoveries are ____ (intellectual property; patent property) rights.
The benefit the consumer of a good or service receives is the private benefit.
An external benefit is a benefit from a good or service that someone other than the ____ receives. Consumer
Marginal social benefit equals marginal private benefit plus marginal external benefit
If an external benefit is present, then the marginal social benefit curve lies above the marginal private benefit curve.
In an unregulated market with an external benefit, the quantity produced is less than the efficient quantity.
If all education in the United States were provided by private, tuition-charging schools, too little education would be consumed.
. Public universities are a service that is an example of public provision.
Which of the following is an example of a voucher? Food stamps
To provide the efficient amount of health care, the government could issue vouchers.
Chapter
GDP is the market value of all the final goods and services produced by all firms located in the United States in a given time period
Marginal external cost
The cost of producing an additional unit of a good or service that falls on people other than the producer.
Efficiency
Efficiency is achieved when the marginal social benefit equals the marginal social cost.
Which of the following best describes an externality? An effect of a transaction felt by someone other than the consumer or producer
Pollution is an example of a ____ externality? Negative production
Which of the following creates an external cost? Second-hand smoke sulfur emitted from smoke stack garbage on the roadside
The cost of producing one more …show more content…
If the government leaves education to the private market, ____ (overproduction; underproduction) occurs. A payment that the government makes to private producers that depends on the level of output is ____ (a subsidy; public provision). The property rights of the creators of knowledge and other discoveries are ____ (intellectual property; patent property) rights.
The benefit the consumer of a good or service receives is the private benefit.
An external benefit is a benefit from a good or service that someone other than the ____ receives. Consumer
Marginal social benefit equals marginal private benefit plus marginal external benefit
If an external benefit is present, then the marginal social benefit curve lies above the marginal private benefit curve.
In an unregulated market with an external benefit, the quantity produced is less than the efficient quantity.
If all education in the United States were provided by private, tuition-charging schools, too little education would be consumed.
. Public universities are a service that is an example of public provision.
Which of the following is an example of a voucher? Food stamps
To provide the efficient amount of health care, the government could issue vouchers.
Chapter