Question :
61) The figure above shows the market for education, a : 1226035
61) The figure above shows the market for education, a good possessing an external benefit. In order to attain the efficient number of students, a government subsidy must equal ________ per student.
A) $2,000
B) $8,000
C) $6,000
D) $10,000
E) $16,000
62) A voucher is
A) the production of a good by some public institution.
B) a payment that government makes to private producers.
C) a token that government provides to households to use in purchasing a specific good.
D) a permit to pollute.
E) a tax that is imposed on consumers rather than producers.
63) Which of the following government actions is appropriate in a market with an external benefit?
A) taxes
B) vouchers
C) marketable permits
D) setting a tax equal to the transactions costs
E) price ceiling
64) Some policymakers have proposed giving parents of children in poorly performing schools tax dollars to help send their children to private schools. This proposal is an example of
A) vouchers.
B) public provision.
C) external costs.
D) taxes.
E) correcting an externality using a government good.
65) Pell grants are money given to students attending college. Pell grants are most closely similar to
A) public provision of a good.
B) private subsidies given to producers of a good.
C) vouchers given to consumers of a good.
D) property rights assigned to consumers of a good.
E) a subsidy given to the producer of a good.
66) Food stamps provided by the government to households are an example of
A) vouchers.
B) marginal benefits from producing a good or service.
C) marginal cost from producing a good or service.
D) marginal external cost.
E) a government good.
67) Vouchers given to consumers
A) increase the demand for a good.
B) decrease the demand for a good.
C) increase the supply of a good.
D) decrease the supply of a good.
E) increase both the demand for the good and the supply of the good.
68) The use of vouchers for education
A) decreases the demand for education and increases the equilibrium quantity.
B) increases the demand for education and increases the equilibrium quantity.
C) increases the deadweight loss for those who can’t afford schooling.
D) decreases the quantity provided to the efficient level.
E) decreases the demand for education and decreases the equilibrium quantity.
69) Education has an external benefit. So to achieve the efficient level of education, an education voucher must equal the difference between the
A) marginal (private) cost and the marginal social benefit.
B) marginal (private) benefit and the marginal social benefit.
C) marginal social benefit and the marginal (private) cost.
D) dollar price and marginal (private) cost.
E) marginal (private) cost and the marginal social cost.
70) If vouchers for a good or service given to consumers, then the supply curve ________ and the demand curve ________.
A) shifts leftward; shifts leftward
B) shifts leftward; shifts rightward
C) shifts rightward; shifts rightward
D) does not shift; shifts rightward
E) shifts rightward; does not shift
