Question
Requesting immediate help, will upvote for fast answer
31. Which of the following is the best example of a public good? a. street lights in a city b. burritos c. gasoline d. city water systems 32. The marginal private cost to a firm of producing the 25th unit of output is $250. The marginal social cout of the 25th unit of output is $300. The marginal external cost (marginal damage cost) of unit of output must be l external cost (marginal damage cost) of the 25th a $5.00 b. $25.00. c. $50.00. d. $250.00 33. According to the Couse theorem, the problem of external costs from air pollution can be solved by a assigning property rights to the air b. taxing the users of air. c. eliminating all transactions costs. d. government regulation to force all palluters to reduce their pollution 34. When the production of widgets creates external benefits, the private market would a produce too many widgets b. produce too few widgets. c. produce exactly the right anount of widgets d. none of the above. 35. Consider the utility curve shown at the right. This person is a risk agnostic. b. risk neutral. c. risk averse. d. risk loving. As a result of adverse selection problems in the fire insurance market, it is likely that over time 36. a. significantly fewer low-risk people will be insur red, but about as many high-risk people will be. b. significantly fewer high-risk people will be insured, but about as many low-risk people will be. c. significantly fewer low-risk and significantly fewer high-risk people will be insured. d. more low-risk people will be insured, and fewer high-risk people will be. 37. Because banks face adverse selection when considering applicants for loans, fewer bank loans are made than could be made if banks had better information. a. b. more bank loans are made than should be made if banks had better information. C banks have to charge lower interest rates than they would if they had better information. d. all of the above.
Explanation / Answer
31
A
Streets lights in a city is pubic good because it has both characteristics its non-rival and not excludable.
