1. The nonrival property of pure public goods implies that the, a) benefits enjoyed by existing consumers decline as more consumers enjoy a given quantity of the good; b) benefits enjoyed by existing consumers are unaffected as more consumers enjoy a given quantity of the good; c) good cannot be priced; d) marginal cost of producing the good is zero.
2. A community currently hires 10 security guards per week to patrol their neighborhood. Each security guard costs $300 per week. Assuming that the tax sharing arrangement agreed to results in each of 300 voters paying the same tax share, each voter pays a weekly tax bill of: a) $1; b) $3; c) $10; d) $30© BrainMass Inc. brainmass.com October 25, 2018, 4:52 am ad1c9bdddf
For the first question note that, a public good is an item whose consumption is not decided by the individual consumer but by the society as a whole, and it is often financed by taxation. Also note that public goods usually have two main properties - that is, ...
This solution include reponses to two multiple choice questions related to pure public goods and tax sharing arrangements.
Characteristics of Supply and Demand
I need help with these questions to contribute to my essay. Any assistance would be appreciated.
Explain the law of supply, and why the supply curve slopes upward? How is the market supply curve derived from the supply curves of individual producers?
- Identify what the major determinants of price elasticity of demand are? Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic or inelastic: (a) bottled water; (b) toothpaste; (c) Crest toothpaste; (d) ketchup; (e) diamond bracelets; and (f) Microsoft's Windows operating system.
- Use the distinction between the characteristics of private and public goods to determine whether the following should be produced through the market system or by government: (a) French fries; (b) airport screening; (c) court systems; (d) mail delivery; and (e) medical care. State why you answered as you did in each case.View Full Posting Details