04 Jun Question Points 1. Which of the following is not a public good?
Question
Question Points
1. Which of the following is not a public good?
a. National defense
b. Patented technological knowledge
c. General knowledge
d. The elimination of poverty
1
2. State and local governments generate revenue from all of the following sources except:
a. sales taxes.
b. the federal government.
c. corporate income taxes.
d. customs duties.
3. Most economists believe that a corporate income tax affects the stockholders of a corporation but not its employees or customers.
a. True
b. False
4. Government subsidized scholarships are an example of a government policy aimed at correcting negative externalities associated with education.
a. True
b. False
5. Although regulation and corrective taxes are both capable of reducing pollution, regulation accomplishes this goal more efficiently.
a. True
b. False
6. Considering the graph below, which of the following statements is correct?
a. The marginal benefit of the positive externality is measured by P3 – P1.
b. The marginal cost of the negative externality is measured by P3 – P2.
c. The marginal cost of the negative externality is measured by P3 – P1.
d. The marginal cost of the negative externality is measured by P3 – P0.
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