FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 14: The Role of Government and Public Goods

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following statements is true?

A) Producer interests are diffused, while consumer interests are concentrated.
B) For public goods, the marginal cost of adding one more consumer is zero.
C) Different groups' support or opposition to any government law or regulation is, in most cases, based on people's beliefs in what is right and what is wrong.
D) The market for dental services is an example of a natural monopoly in most large urban areas in the US.
E) When dealing with problems created by natural monopolies, one of the approaches economists usually tend to favor is for government to take over the production of that good or service.

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

Provision of health statistics by the National Center for Health Statistics is an example of the government performing its role as provider of a public good.

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

The market for health insurance has been experiencing market failure due to economies of scale in insurance provision which results in a natural monopoly.

Board certification by the American College of Surgeons in a particular surgery is one way surgeons can use to privatize the public good of surgical knowledge and extract monopoly rents from it.

Which three properties characterize public goods? Public goods are

If a congressional leader passes a bill favorable to a particular pharmaceutical firm, then resigns to take a consultant position with the same firm, this may be an example of

Consider Al. Al, is an alcoholic, spent 15 years in his addiction drinking heavily. For 10 years now, he's been a recovering alcoholic. He attends support meetings and contributes to the care of newly sober alcoholics and addicts. He has turned his life around. Al recently found out he has a rare liver disease. Since liver transplant demand far exceeds the available supply of livers for transplant, a rationing body ranks those waiting for a transplant in a sort of lottery system. Should the ranking committee allow Al on the list? Would your answer change if Al were still a drinking alcoholic? What is different about your reasoning?

Direct government funding of healthcare expenditures was more than $1.4 trillion in 2012. Including the subsidy for preferential tax treatment, this represents more than half of all health care spending in the U.S. In recent years, this funding has been increasing. This increased spending comes at a very low, almost negligible, opportunity cost in terms of spending on public health care programs and medical research & development, as these entries in the government budget have their own separate funding.

What are the most difficult aspects of the Coase Theorem in solving a problem like spread of a dangerous flu by those who are not vaccinated against it? Assume the vaccine is 99.9% effective.

To classify a good as either private or public, it is sufficient to look into the following two basic characteristics of public goods: whether the good is nonexclusive and whether the good is inexhaustible. Thus, there is always a clear distinction between private and public goods.

Rational ignorance means you and I can go to school each day, eat, sleep and never think twice about the health safety of the products we consume. Name as many products as you can that you use on a regular basis which you count on the federal government to certify as safe.

"Lines of patients outside the methadone clinic each morning create a negative externality to people waiting for the bus to go to work and school." Criticize or defend this statement.

The role of the government as a provider of health care is

The roles of government include all of the following tasks except

It is possible that pesticides sprayed on coffee bean crops poses unknown threats to the future health of those who consume it. It is also possible that pesticides sprayed on mountain crops runs downward to collect and affect other crops in countries such as Nicaragua, where government testing and regulation standards differs from U.S. The Fair Trade movement, which includes coffee, chocolate and other products, is aimed at making consumers aware of the poor living conditions of workers in countries like Nicaragua. It partners with local growers to insure a wage a bit higher than the local wage to produce a quality of coffee beans that meets the definition of organic. How is the Fair Trade movement seeking to overcome rational ignorance of U.S. consumers? What incentive to U.S. consumers have besides a sense of environmental responsibility to pay a higher price than for other coffees?

Very uneven distribution of goods in a market is one of the possible causes of market failure.

The Coase Theorem

Explain the interaction among the ideals of public welfare maximization, regulatory capture, and bureaucratic objectives in enacting policy regarding a controversial vaccine aimed at fighting a potential epidemic.

Almost half of all injuries to U.S. soldiers in Iraq have come from surviving attacks with IEDs, Improvised Explosive Devices. Many of the injuries cause traumatic brain injuries and loss of limbs. What positive externality might possibly come from such fatalities?

In 1983, Reverend Wells founded ODAAT (One Day At A Time) as a comprehensive support center for recovering homeless addicts in Philadelphia. ODAAT is especially effective in channeling at-risk individuals to social services for HIV/AIDs testing. This is an example of a non-governmental organization (NGO) in the voluntary sector which aids government operations.