Tuesday HW Market failure

“Once a public good is produced, anyone can enjoy it, even those who did not pay for its consumption.” This statement describes which economic concept?

• An absence of private property rights

• Free-rider problem

• Government Failure

Public goods are non-rival and non- ?

Which of the following is not a public good?

• Street Lights

• The Army

• Buses

• Flood Control Systems

Is public transport a public good?

• Yes

• No

Public goods cause market failure because of ?

• A

• B

• C

• D

• A

• B

• C

• D

The use of advertisement to decrease negative externality of consumption affects

• Marginal social cost

• Marginal private cost

• Marginal social benefit

• Marginal private benefit

The use of taxes to decrease negative externality of production affects

• Marginal social cost

• Marginal private cost

• Marginal social benefit

• Marginal private benefit

The benefit your neighbor receives from hearing you play your pleasant music

• Private costs

• External costs

• Private benefits

• External benefits