Question

1. When asked to reveal their true preferences people

   		always tell the truth.
   		never tell the truth.
   		sometimes tell the truth.
   		generally don't know what preferences are.

10 分   

問題 2

1. Demand curves for pure public goods satisfy the law of demand.

   		True.
   		False.
   		Uncertain.

10 分   

問題 3

1. Summing demand curves horizontally sends market ______________ to individuals, while summing vertically sends market ______________ to individuals.

   		price; price
   		quantity; quantity
   		quantity; price
   		price; quantity

10 分   

問題 4

1. The MRT is

   		the marginal ring tone.
   		the minimal rate of time.
   		the maximum rate of transformation.
   		none of the above.

10 分   

問題 5

1. Public goods are characterized by

   		nonrivalness.
   		excludability.
   		the sum of the MRSs equaling MRT.
   		all of the above.

10 分   

問題 6

1. A ________ is a person who wants to enjoy the benefits of a public good without contributing his or her marginal benefit to the cost of financing the amount made.

   		free rider
   		politician
   		price maker
   		price optimizer

10 分   

問題 7

1. A private good is

   		nonrival in consumption.
   		subject to free rider problems.
   		subject to exclusion.
   		not subject to exclusion.
   		none of the above.

10 分   

問題 8

1. Equilibrium for public goods is characterized by

   		MSB = MSB.
   		ΣMRS = MRT.
   		MRS = MRS = MRS=…=MRS = MRT.
   		MC = MB.
   		MRS – MRT = MSB.

10 分   

問題 9

1. A pure private good is

   		nonrival in consumption and subject to exclusion.
   		rival in consumption and subject to exclusion.
   		rival in consumption and not subject to exclusion.
   		all of the above.

10 分   

問題 10

1. Which of the following is a public good?

   		public defense
   		public television
   		a library
   		schools
   		all of the above

Answer 1

1. Option C

People words don't reflect their true preferences. Sometimes they may say that they don't want an expensive product but actually they want and it is possible that they require and want help to restrain themselves from buying product that they have trouble resisting.

2.True

Pure public goods are those that are perfectly non-rivalrous in consumption and non-excludable.The demand curve for a pure public good is downward sloping, due to the law of diminishing marginal utility

3.Option D

Horizontal summation implies that the addition is taking place across quantities.Horizontal summation is appropriate when demands are competing. Competingdemands imply the consumption by one individual detracts form the potentialenjoyment of others.Vertical assumption is appropriate when demands are non-competing so thatconsumption by one individual does not detract from the potential for others to enjoythe good. Non-competing demands imply zero marginal cost for additional users.

4.Option D

The marginal rate of transformation (MRT) can be defined as how many units of good x have to stop being produced in order to produce an extra unit of good y, while keeping constant the use of production factors and the technology being used.