Question : 81) Which of the following the best description of a : 1384313

81) Which of the following is the best description of a “free rider”? Someone who

A) pays for a good but does not receive any benefit from the good.

B) receives the benefit of a good without having to pay for it.

C) does not produce any goods but is able to consume them.

D) consumes a good until the marginal benefit received from the last unit is zero.

E) consumes a good until the marginal benefit received from the last unit is equal to the marginal cost of producing the good.

82) Because of the free-rider problem,

A) the private market will generally produce the efficient amount of a public good.

B) too many people will over-consume a public good.

C) government will not be able to produce an efficient amount of a public good.

D) it is difficult to make people pay for a public good, and thus private markets will tend not to produce it.

E) people need to pay a government user fee to pay for the good’s production.

83) It is inefficient for the government to charge a price for consuming public health information because

A) too much of the information will be produced.

B) the price cannot be set to cover all research costs.

C) no one will be willing to pay to use this information.

D) the cost of providing this information to an additional person is essentially zero.

E) the marginal costs of producing it exceed the marginal benefits of using it.

84) The efficient price to charge consumers for their use of a public good is

A) equal to the average per-person cost of providing this good.

B) equal to the cost of providing the good to one additional consumer.

C) equal to the highest individual marginal benefit from consuming a unit of the good.

D) that price that prevents free riding by some consumers.

E) equal to the price that the free market would achieve.

85) Refer to Figure 16-4. What is the optimal provision of this public good?

A) Q

B) Q1

C) Q2

D) Q3

E) Q4

86) Refer to Figure 16-4. The curve MBABC is derived by

A) a vertical summation of the marginal benefits of all individuals at each level of output.

B) observation of the consumption of public goods at a price of zero.

C) observation of the consumption of public goods at the optimal price.

D) a horizontal summation of the marginal benefits of all individuals at each given price level.

E) determining the private marginal cost of the public good.

87) Refer to Figure 16-4. Suppose the optimal amount of this good is provided, but that Individual B was only consuming units of the good. What would be the marginal cost of Individual B consuming an extra unit of this good?

A) P2.

B) P4.

C) P4-P2.

D) MB.

E) approximately zero.

88) Refer to Figure 16-4. Suppose the government provides Q4 units of the public good. If the government was able to require consumers to pay a price of , then

A) the market would clear, although not enough would be produced.

B) the inefficient quantity would be being produced.

C) the appropriate price would be achieved, although not enough would be consumed.

D) consumers would not use the public good at all, and this would be socially optimal.

E) consumers would not use the public good at all, and this would not be an efficient outcome for society.

A) the market would clear, although not enough would be produced.

B) an inefficient quantity would be being produced.

C) consumers would use too little of the public good, and the outcome would be inefficient for society.

D) consumers would not use the public good at all, and this would be socially optimal.

E) the appropriate price would be achieved, although not enough would be consumed.

90) Refer to Figure 16-4. Suppose the government provides Q4 units of the public good. If consumers were then required to pay a price of zero for the good,

A) the market would clear, although not enough would be produced.

B) the inefficient quantity would be being produced.

C) consumers would use too little of the public good, and the outcome would be inefficient for society.

D) consumers would use the public good until their marginal benefit was zero, and this would be socially optimal.

E) the appropriate price would be achieved, although not enough would be consumed.