Test Bank to pany Rosen ’s Public Finance, Seventh Edition Chapter 4 1 CHAPTER 4- Public Goods Multiple- Choice Questions 1. Public goods are characterized by a) nonrivalness. b) excludability. c) the sum of the MRSs equaling MRT. d) allof the above. 2. Market mechanisms are unlikely to provide a) prices. b) nonrival goods efficiently. c) supply and demand. d)none of the above. pure private good is a) nonrival in consumption and subject to exclusion. b) rival in consumption and subject to exclusion. c) rival in consumption and not subject to exclusion. d) allof the above. 4. Commodity egalitarianism refers modities that a) are important for most consumers. b) are too dangerous for most consumers. c) should be made available to all consumers. d) are good ideas but never produced. e) are produced in bulk. 5. Charging individual prices that are based on consumers ’ willingness to pay is a) government price supports. b) will pricing. c) second tier pricing. d) price discrimination. 6. Equilibrium for public goods is characterized by a) MSB = MSB. b) ? MRS = MRT. c) MRS = MRS = MRS= …=MRS = MRT. d) MC = MB. e) MRS – MRT = MSB. Test Bank to pany Rosen ’s Public Finance, Seventh Edition Chapter 4 2 7. Summing demand curves horizontally sends market ______________ to individuals, while summing vertically sends market ______________ to individuals. a) price; price b) quantity; quant
