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Unit 6: Market Failures and Government Involvement Flashcards | StudBud
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Unit 6: Market Failures and Government Involvement
Unit 6: Market Failures and Government Involvement
33 terms
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StudBud Administration
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A microeconomics quiz reviewing market failures and government involvement in an economy
Flashcards
33 cards
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Questions
33
Answers
1
Marginal Shared Benefit=
Quasi-Public Goods
Willingness to pay
Net Benefit
Marginal Shared Cost
2
What goods do the government provide?
public goods
pure private goods
goods with taxes
private goods
3
What is this graph called?
lorenz curve
lorenzo curve
banana curve
lee curve
4
When demand is more elastic than supply, the
tax
burden falls on ________
the sellers
the buyers
5
Mr. Bullard pays the same tax rate as Mr. E despite their income differences. What tax is this?
flat rate tax
progressive tax
constant tax
proportional tax
6
A negative externality of traveling is?
air noise from planes
pollution from modes of transport
losing your passport
getting sunburned like a tomato
7
What is an example of a non-rivalrous good?
Stock Market
Education
Buying the new iPhone (android sucks)
Buying a ticket for Endgame open night
8
A transfer payment ________
none of the above
is transferring money for a good or service
is the government making a payment getting nothing in return
doesn't redistribute income and wealth
9
What is an example of the common pool problem?
having a common resource between a group of people
equal distribution of resources between people
having a shared resource but self-interest leads to conflict
the exploitation of one's goods and resources
10
What is an example of a private good?
Airplanes
Police
Education
Streetlights
11
Giovanni earns less than his sister but pays more in taxes than her. What tax is this?
rough tax
regressive tax
reduced tax
regression tax
12
What are some causes of market failure?
positive and negative externalities
least cost rule
wage takers
collusion and cartels
13
What is market failure?
kinda fun
very fun
not so fun
fun
14
What are characteristics of public goods?
Goods produced and delivered so that exclusion is possible
Nonrivalry and Nonexcludability
Individual ownership
Competition between goods
15
What is an example of a non-exclusive good?
Claiming the Iron Throne
Buying popcorn
Binging Game of Thrones
Buying a TV
16
Mr. Bullard
always
uses his neighbor's WiFi because he doesn't want to pay. This is called?
free riders problem
free rider problem
free rider problems
freeloading
17
What does the
Lorenz Curve
show?
the distribution of income or wealth
the income or wealth of a nation over time
level of equality in the workforce
the national income against the population
18
What graph is this?
positive externality
MSB=MSC
marginal private cost
negative externality
19
The positive externality of government flu subsidies?
a child dying from getting the wrong vaccine
the cost of the vaccine is cheaper
a child receiving a flu vaccine and not dying
a low number of flu outbreaks in America
20
Tony pays higher taxes than Ryan because he has a higher income. What tax is this?
professional tax
progressive tax
progression tax
pretentious tax
21
Why is the Gini Coefficient important?
allows the government to know what goods to allocate
gives the government an understanding of who is taxed a lot
It allows the gov to know what goods to produce
it measures income inequality and GDP per capita
22
What are the characteristics of a pure private good?
goods that you must have money for, not a necessity
a fancy water bottle, or a bag or chips
mandatory for people to buy this good
goods that are available to most people
23
The increase in satisfaction obtained from consumption or production of one additional unit
is?
marginal private cost
marginal private benefit
marginal social cost
marginal social benefit
24
What does MPB stand for?
marginal producer benefit
marginal private benefit
marginal personal benefit
marginal production benefit
25
What are the x and y axis of the Lorenz curve?
investment, saving
quantity, exchange rate
cumulative % of income, cumulative % of population
quantity of _____, price or ______
26
When supply is more elastic than demand, the
tax
burden falls on _______
the sellers
the buyers
27
What is the most commonly used measurement of inequality?
gini coefficient
cerrado coefficient
corrado coefficient
genie coefficient
28
The changes in the producer's total cost by the production of an additional unit of a good
is
?
marginal social benefit
marginal private benefit
marginal social cost
marginal private cost
29
Why would someone believe that progressive taxes are better?
They increase the flow of money in the economy
It redistributes money from the poor to the rich
progressive taxes set a flat tax on the rich and poor
It lessens the tax burden for the poor
30
What does MPC stand for
marginal personal cost
marginal private costs
marginal private cost
marginal progressive cost
31
What is
actual
Market Failure?
Markets focusing on the resale of failed products
Deciding whether or not to provide a particular good
When markets fail to deliver goods and services when needed
When the number of producers are higher then the consumers
32
What type of graph is this?
depreciation of currency
marginal private cost
positive externality
negative externality graph
33
How does the government affect income distribution?
Supplying lower class with subsidies so they can get a job
Through taxes, welfare, and public services
Through trade and tariffs
Exchanging their money in the foreign market
