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Flash Quiz
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Radio is an example of a good that is
A)only nonrival.
B)only nonexcludable.
C)neither nonrival nor nonexcludable.
D)both nonrival and nonexcludable.
A copy of the movie Pulp Fiction at the video store is a __________ good; when it is shown on HBO it is a __________ good; and when it is shown on CBS it is a __________ good.
A)private; public; pure public
B)collective; private; public
C)private; private; collective
D)private; collective; public
E)private; private; public
In general,
A)government must always provide pure public goods.
B)government is best able to provide all public goods, pure and otherwise.
C)government should only provide public goods when private solutions fail and the benefits exceed the costs.
D)the benefits of public goods will necessarily be less than the costs so government must be relied upon to provide them.
E)the lack of a profit motive means government provided public goods will be wasteful.
Which of the following is not a proper justification for charging the government with the responsibility for collecting revenues to finance a public good?
A)No single individual may have a reservation price high enough to pay for the public good.
B)Negotiation between private citizens about each person's contribution is costly.
C)Individuals may attempt to free ride on the contributions of others.
D)The costs of the public good exceed the benefits.
E)The number of citizens affected may be so large as to render private negotiation impossible.
Karl earns $25,000 while Angel earns $40,000. If they are subject to a regressive tax structure,
A)Karl and Angel will pay the same amount in taxes.
B)Karl will pay a larger amount in taxes.
C)Angel will pay a larger amount in taxes.
D)Karl will pay a larger percentage of his income in taxes.
E)Karl and Angel will pay the same percentage of income in taxes.
A _________ good is one whose consumption by one person does not diminish its availability for others.
A _________ good is a rival good that is also nonexcludable.
A)pure commons
B)pure collective
C)pure public
D)pure private
E)pure excludable
A tax that collects the same amount from every taxpayer is called a _______.
A)progressive tax
B)proportional tax
C)flat tax
D)head tax
E)uniform tax
The socially unproductive efforts of people or firms to win a prize are known as _______.
B)pork barrel spending
C)moral hazard spending
D)rent seeking
E)private contracting
_________ refers to the phenomenon that government borrowing leads to higher interest rates, causing private firms to cancel planned investment projects.
B)Rent seeking
C)Crowding out
D)Pork barrel spending
E)Private contracting

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