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URBAN_ECON_FINAL_EXAM - Urban Economics Final Exam INSTRUCT...

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Urban Economics Final Exam INSTRUCTIONS : Complete the Certification below. Answer any 3 questions in section A, any 3 questions in section B, any 2 questions in Section C, and one of the questions in Section D. (See the Special Note concerning Section D below.) Do not answer any more than the required number of questions in each section. TOTAL POINTS ON THE EXAM = 100. Point values in each section are: 5 points each in Section A, 10 points each in Section B, 15 points each in Section C, and 25 points for the question in Section D. You can spend the entire amount of time until the exam is due to complete it, but I expect that most people will be able to complete the exam in about two hours. RESOURCES: You can consult your book, notes, the library, or the internet. You cannot consult with another person. If you have questions about any aspect of the exam, get in touch with me by email at [email protected] . COMPLETING THE EXAM : You can write your answers directly into the MS Word document and return the completed exam as an attachment to email, or you can copy-and-paste your completed exam into the body of an email. CERTIFICATION : I certify that I have not received any unauthorized assistance in completing this exam. __X____________(indicate with an “X”). NAME: _Kouros Vala__________________________ Return completed exam by email to [email protected] no later than noon Monday, December 14 . Section A. Answer any 3 questions (5 points each). Generally, questions in this section can be answered in 3-5 sentences (plus any graphs you may wish to add). A.1. (True, False, Uncertain; Explain) “An efficient allocation is the best allocation.” It is uncertain to say that “efficient allocation if the best allocation” because resource allocation depends on the perspective of the public sector as they set to allocate public goods and services. The two approaches may be broken down into the views of macroeconomics and microeconomics. According to the microeconomic theory, the principles
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of efficient allocation of resources, including the principles which apply to goods and services are made public. Goods and services that are public have two features: (1) they are consumed jointly by a large number of people, and (2) it is costly to exclude people from enjoying them. It is also important to take into consideration the influences of the distribution of income which are key indicators for decision-making. Therefore, the efficient use of resources and the distribution of income are separation considerations; whereas, the best allocation will vary. According to macroeconomics, policies were primarily aimed at reducing the unemployment, promoting price stability, and providing for future growth. A.2. What are public goods? How do they differ from private goods? A public good is one that is freely available to everyone. So if the good is offered to one person, then it is impossible and impractical for the good to be excluded from others. In most cases, governments are best suited for providing people with public goods; such as, public schools, libraries, national parks, clean air, and even traffic lights. A distinctive
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URBAN_ECON_FINAL_EXAM - Urban Economics Final Exam INSTRUCT...

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