WorksheetsDeneva Contreras, Public Goods
Total questions: 15
Worksheet time: 1hrs 15mins
What is one reason that firefighter services are considered a public good?
Everyone in the community benefits from it.
Nobody in the community has to pay for it.
Private firms make a profit from producing it
Individual citizens pay directly for it.
Public goods are examples of market failure, because producing these goods in the free market
shows that the free enterprise system cannot distribute resources.
helps entrepreneurs learn how to distribute public resources.
does not allow for the efficient distribution of resources.
encourages private businesses to distribute resources efficiently.
Which of the following is an example of a negative externality resulting from an outdoor concert in the park?
College students near by get to enjoy free entertainment
An elderly woman in her apartment hears a song that she liked as a child.
A pizza parlor stays open later and makes a bigger profit than most nights
A traffic jam occurs as drivers hunt for parking spots near the concert.
Which of the following explains why a city fireworks display on the Fourth of July is provided as a public good?
Fireworks displays usually take place in a public area.
Fireworks are a scarce resource.
Nonpayers cannot be prevented from seeing the fireworks.
Each consumer pays a fee to see the fireworks.
What might be the economic benefit of the government providing a public good rather than the private sector?
decreased prices for the good
decreased cost for the good
increased taxes needed to provide the good
greater efficiency in providing the good
What is critical in determining whether something is produced as a public good?
whether the market has the resources to provide it
whether the benefits to society are greater than the total cost
whether the government needs to use tax money to provide it
whether the benefits are limited to the poor
Market failure occurs whenever
free markets fail to distribute resources efficiently.
goods fail to arrive at a market in a timely fashion.
government builds infrastructure.
voluntary exchange in a market fails to result in a sale.
If a student volunteers at a food pantry on Fridays after school, which of the following might be a negative externality?
The student might learn a new skill.
The student might make some new friends.
The student's parents have to drive him or her to the food pantry.
The student might decide to volunteer two days a week.
Why do U.S. economic policies seek to achieve the goal of maximum employment?
High employment is a signal to producers to lower prices on goods and services.
The Constitution guarantees a job to Americans who are willing and able to work
When more people work, the economy is more productive and the standard of living rises
The more people who are employed, the more secure the financial markets will be.
Why has the United States space program been operated as a public good?
Private enterprise does not have the technical skill needed to build the rockets that carry astronauts into space.
The profit incentive for a private company to establish and run its own space program is too great.
The inability of the American space program to land an astronaut on Mars is an example of market failure.
It is impractical to exclude nonpayers from enjoying the scientific and technological benefits of the space program.
Government-built infrastructure is a public good. Which of the following BEST paraphrases the intent of this press release by a government official?
to inform people about the various types of infrastructure
to warn people that the nation's infrastructure needs to be repaired
to alert people to the large investment needed to repair infrastructure
to persuade people that the benefits of repairing infrastructure outweigh the costs
Use the image to answer the questions:
Which of the following best describes the use of the private bridge by the public?
the efficient allocation of resources
the free-rider problem
positive externalities
negative externalities
Use the image to answer the question:
Which mean household income level saw the greatest change relative to the others during this period?
Highest 20%
Fourth 20%
Second 20%
Lowest 20%
Which of the following is a function of households in the market economy?
They supply firms with the factors of production (LABOR)
They supply firms with goods and services.
They send land, labor, and capital to firms through the product market.
They send money to firms through the factor market.
Use the image to answer the question:
What two qualities that work together to regulate the marketplace are present in this photo of two cellphone service providers?
innovation and specialization
efficiency and underutilization
competition and self-interest
opportunity and efficiency
