Role of Government in the Economy

Which of the following statements identifies roles of a limited government?

• ensuring stable prices

• Supplying no public goods

• discouraging competition

• defining and protecting private property rights

A government agency is considering funding a public dog park. Which of the following criteria is needed in order for it to qualify as a public good?

• Easily accessible location

• excludable

• Taxpayers only

• Non-Excludable

The Right to buy or sell, exclude others from using it, make a profit and could include: Land, Home, or ideas.

• Private goods

• Public Goods

• Private Property

• Public sector

Non Rivalrous means

• One person’s use cannot take away from another’s use of the good

• The more you pay the more you can use

• Increase in the competitiveness of using the good

• No rules or laws apply when using the good

Which of the following would be considered a market failure?

• Advertising goods and services

• A new building in a community

• Noise pollution from a junkyard

• More jobs from a new business

How are public goods exchanged?

• Pay to use

• Those who pay more taxes use it first

• Proof of paying taxes

• Just use the good when needed

Why is National Defense a public good?

• It is rivalrous

• You can exclude non taxpayers

• You pay a bill each time it is used

• Everyone in the nation receives the benefit

Why is private education not considered a public good?

• It is Non rivalrous

• You must pay tuition therefore it is excludable

• It is available to anyone who wants to attend

• It is required to attend

As an adult, there may be times in your life that you find yourself unemployed. Therefore, you should

• stay informed about the labor market and what jobs may be lost or needed

• request that your boss give you plenty of notice before a potential layoff so you have time to take action

• spend, spend, spend. You never know which paycheck may be your last, and you want to own everything you might need

• consider ways to continually devalue your job

To avoid seasonal unemployment workers should

• Find ways to be valued by the company

• Keep skill in line with high demand jobs

• Work remotely

• Keep an updated resume and apply for jobs after college