31. Equilibrium in the public-goods case with simultaneity of consumption requir

ID: 1123908 • Letter: 3

Question

31. Equilibrium in the public-goods case with simultaneity of consumption requires each consumer to consume __________ of the good.

a. a large quantity

b. an equal quantity

c. different quantities

d. a small quantity

32. Bowen’s model to proxy public-goods demands is known as the

a. median voter model.

b. capture theory model.

c. rent-seeking model.

d. Lindahl pricing model.

33. The median voter model assumes that voters

a. take the individual cost of the public good into consideration.

b. determine their demand based on expected utility.

c. correctly reveal their preferences.

d. all of the above.

34. The marginal cost of a public good is

a. the cost of providing the good.

b. the share of taxes paid by each citizen.

c. less than the marginal benefit.

d. absorbed by the g35. Under Lindahl pricing, each group of demanders pays a tax equal to its

a. marginal cost.

b. marginal valuation.

c. voting power.

d. total benefit.

35. Under Lindahl pricing, each group of demanders pays a tax equal to its

a. marginal cost.

b. marginal valuation.

c. voting power.

d. total benefit.

31) B. Equal quantity of public good because public good consumption have rival character.

32) D. Bowmen an dlindahl pricing model says the same thing

33) A. Median voter takes his decision on the basis of his cost and benefits.

34) A. Marginal cost is the cost of providing the good

35)B. Each pays tax according to their marginal benegit or marginal valuation

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