IBE316quiz3 - IBE316 Economic Policy Quiz#3 Name ID 1 The...

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IBE316: Economic Policy Quiz #3 Name: ID: 1. The free-rider problem refers to people who A) will only consume a public good if it is free. B) should be allowed to consume public goods even if they do not pay. C) will not voluntarily pay for a public good even though they would benefit from it. D) cannot pay for a public good because the lack of information. 2. Efficient private provision of pure public goods is difficult because A) too much will be demanded as each consumer buys his own public good. B) too little will be demanded because private provision leads to higher marginal costs than public provision. C) too much will be produced as firms compete with each other. D) too little will be demanded as, individually, consumers choose not to pay the full cost of units of the good. 3. At the efficient level of public goods provision, which of the following is not generally true? A) An individual’s marginal benefit is less than the cost of the last unit. B)
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IBE316quiz3 - IBE316 Economic Policy Quiz#3 Name ID 1 The...

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