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What is one reason that firefighter services are considered a public good?

• Everyone in the community benefits from it.

• Nobody in the community has to pay for it.

• Private firms make a profit from producing it

• Individual citizens pay directly for it.

Which of the following explains why a city fireworks display on the Fourth of July is provided as a public good?

• Fireworks displays usually take place in a public area.

• Fireworks are a scarce resource.

• Nonpayers cannot be prevented from seeing the fireworks.

• Each consumer pays a fee to see the fireworks.

Market failure occurs whenever

• free markets fail to distribute resources efficiently.

• goods fail to arrive at a market in a timely fashion.

• government builds infrastructure.

• voluntary exchange in a market fails to result in a sale.

Why has the United States space program been operated as a public good?

• Private enterprise does not have the technical skill needed to build the rockets that carry astronauts into space.

• The profit incentive for a private company to establish and run its own space program is too great.

• The inability of the American space program to land an astronaut on Mars is an example of market failure.

• It is impractical to exclude nonpayers from enjoying the scientific and technological benefits of the space program.

Which of the following is NOT an example of a public good?

• Fireworks display

• National Defense

• Public transportation

• Lighthouse

What is the free rider problem?

• scarcity even when you pay for a good

• Reaping all the benefits without contributing

• Common goods that don't have a price

• none of the above

What statement best explains why the government provides goods and services to its citizens?

• To provide benefits to small groups of people in certain areas of the country.

• To provide goods and services that would not be available if individuals had to provide them.

• To compete with businesses in the private sector.

• To make a large profit by providing certain goods and services to it's citizens.

The government pays for public goods and services through —

• donations from wealthy politicians

• donations from foreign nations

• revenue from sales and income taxes

• revenue from the lottery

An essential characteristic of a public good is that it is non-excludable. This means that

• Public goods are of equal benefit to all consumers

• There is no opportunity cost in the provision of public goods.

• People could consume the good without paying for it.

• The government should not levy a tax for providing public goods.

Which one of the following goods is excludable?

• A city bus

• A bridge that does not charge a toll

• Protection from the police force

• The atmosphere