Characteristics of a pure public good.

Non-exclusion and Shared Consumption

If commuters cannot afford to ride the bus, gov't should...

create a price ceiling for bus rides.

The most basic economic role for government is

protect property and enforce contracts

The first tax charged by the federal gov't was a tax on alcohol. It was used for revenue and to discourage drinking.

This is an example of using a tax as an incentive.

Characteristics of a pure private good.

Exclusion and Non-shared Consumption

An example of a positive externality is...

Your significant other gets a cootie shot.

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The Government Role: Price Controls, Taxes, Public Goods, and Externalities.2020-21

26 termsStudBud Administration109 plays

Checking for understanding about the role of the government in the economy, including price controls, externalities, public goods, and taxes.

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Questions 26

Answers

1
The tax rules are clear, easy to understand, and easy to calculate.
Efficiency
Simplicity
Ability to Pay
Benefits Received
2
When 3rd party benefits exist, government should...
Prevent the Activity
Do Nothing
Subsidize the Activity
Limit the Activity
3
Characteristics of a pure public good.
Exclusion and Shared Consumption
Non-exclusion and Non-shared Consumption
Exclusion and Non-shared Consumption
Non-exclusion and Shared Consumption
4
Good or service produced by government with taxpayer money.
Public
Positive Externality
Private
Negative Externality
5
Poorer people pay a lower % of income than wealthy people pay in taxes.
Simplicity
Ability to Pay
Benefits Received
Efficiency
6
The gas tax is used to repair roads and paid by drivers who use the roads.
Ability to Pay
Benefits Received
Simplicity
Efficiency
7
If commuters cannot afford to ride the bus, gov't should...
create a price floor for bus rides.
eliminate public buses.
create a price ceiling for bus rides.
discourage more competition.
8
Which of the following is a negative externality?
Police
Public School
Fire Alarm
Pesticide Run Off
9
Sales tax is collected immediately at the cash register, without any trouble for the buyer.
Benefits Received
Efficiency
Simplicity
Ability to Pay
10
A fee charged to campers for the use of state parks DOES NOT meet the principle of
Efficiency
Simplicity
Benefits received.
Ability to pay
11
Which of the following is a negative externality?
Public Park
Scientific Research
Car Exhaust
Vaccine
12
Example of a pure private good.
Flood Control
Starbucks
k-12 Education
Police Protection
13
The most basic economic role for government is
establish interstate transportation
laissez faire economic policy
regulate small businesses
protect property and enforce contracts
14
A normal, voluntary transaction between buyer and seller.
Positive Externality
Public
Negative Externality
Private
15
Police protection would be an example of a service that has....
Positive Externalities
Negative Externalities
Private Costs
Private Benefits
16
The first tax charged by the federal gov't was a tax on alcohol. It was used for revenue and to discourage drinking.
This is an example of using a tax as an incentive.
This is an example of a tax based on ability to pay.
This is a tax that was popular.
This is a tax based on voluntary exchange.
17
Characteristics of a pure private good.
Exclusion and Non-shared Consumption
Exclusion and Shared Consumption
Non-exclusion and Shared Consumption
Non-exclusion and Non-shared Consumption
18
What is an externality?
Affects the Buyer
Affects the Seller
Affects a 3rd Party
A Government Program
19
Example of a pure public good.
Garage Sale
Flood Control
Mall Security
Starbucks
20
Minimum wage is an example of...
Price Ceiling
Price Floor
Equilibrium Price
Price Discrimination
21
Someone who gets benefit of a good without paying for it.
Free Rider
Buyer and Seller
Free Market
Private Consumer
22
An example of a positive externality is...
Your significant other gets a cootie shot.
Live next door to a fire house.
You attend a private college prep school.
Your job gives you 3 weeks vacation.
23
A government price control that acts as a minimum price.
Price Floor
Price Discrimination
Price Ceiling
Equilibrium Price
24
A government price control that acts as a maximum price.
Price Discrimination
Price Floor
Equilibrium Price
Price Ceiling
25
Rent control is an example of...
Price Discrimination
Price Floor
Price Ceiling
Equilibrium Price
26
When 3rd party costs exist, government should...
Prevent or Limit the Activity
Subsidize the Activity
Promote the Activity
Do Nothing

The Government Role: Price Controls, Taxes, Public Goods, and Externalities.2020-21 Flashcards | StudBud