Question :
31) Which of the following devices that the government uses : 1226032
31) Which of the following are devices that the government uses to achieve a more efficient allocation of resources in the presence of external benefits?
A) taxes, private subsidies, and regulation
B) public provision, taxes, and private subsidies
C) regulations, public provision, and vouchers
D) vouchers, public provision, and private subsidies
E) public provision, taxes, and vouchers
32) The government can overcome the inefficiency created by a good with an external benefit by using
A) public provision.
B) marketable permits.
C) taxes.
D) emission charges.
E) None of the above answers is correct.
33) Public provision
A) is the production of a good by the government by giving funds to private producers.
B) lowers the marginal cost of producing the good.
C) means the good is produced by a public authority that receives the most of its revenue from the government.
D) Both answers A and B are correct.
E) Both answers B and C are correct.
34) The production of a good or service by an authority that receives the most of its revenue from the government is referred to as
A) public provision.
B) private subsidies.
C) vouchers.
D) copyrights.
E) Coasian production.
35) Which of the following is an example of a product that is made available through public provision?
i.local police protection
ii.public schools
iii.local fire department
A) i only
B) i and ii
C) iii only
D) i and iii
E) i, ii, and iii
36) When government provides a good with an external benefit, to attain efficiency the price paid by consumers is set equal to the
A) marginal private benefit at the efficient level of output.
B) marginal private cost at the efficient level of output.
C) amount paid by taxpayers.
D) market-determined price.
E) marginal external benefit at the efficient level of output.
37) A subsidy is
A) the revenue received from the government to produce a good or service by a public authority.
B) a voucher received by the government from producers of goods and services.
C) a payment that the government makes to private producers of goods and services.
D) a tax imposed on the producers of certain goods or services.
E) a tax imposed on the consumers of certain goods or services.
38) A payment made by the government to private producers of roads and libraries would be an example of
A) a subsidy.
B) a copyright.
C) a voucher.
D) public provision.
E) a Coase payment.
39) Which of the following is a method used by government to cope with the situation in which production of a good creates an external benefit?
A) removing property rights
B) subsidizing production
C) marketable permits
D) running a lottery
E) imposing Coasian taxes
40) A government subsidy
A) is a policy that can be used to help eliminate the deadweight loss from an external cost.
B) can help achieve an efficient amount of output when the good has an external benefit.
C) increases consumers’ marginal benefit from the good.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
