Test Bank to accompany Rosen’s Public Finance, Seventh Edition Chapter 3 CHAPTER 3 - Tools of good that the public must pay for. b) nonrival in consumption. c) more costly than a private good. d) paid for by the government.
9. Merit goods a) are provided for those who behave themselves and play nice. b) should be provided even if there is no demand for them. c) increase in costs along with demand. d) do none of the above.
10. A social welfare function a) is a function made by the Department of Welfare. b) is a function that shows that the utilities of society are incorporated into society’s well-being. c) can never be derived numerically. d) is all of the above.
11. Movement from an inefficient allocation to an efficient allocation in the Edgeworth Box will a) increase the utility of all individuals. b) increase the utility of at least one individual, but may decrease the level of utility of another person. c) increase the utility of one individual, but cannot decrease the utility of any individual. d) decrease the utility of all individuals.
12. Points on the utility possibility frontier are a) inefficient. b) poi
