A highway that is never congested is ____________________ good.

an excludable and a nonrival
a nonexcludable and a nonrival
a non-excludable and a rival
an excludable and a rival

The economy's marginal benefit curve for a public good is equal to the ________________.

vertical sum of the individual marginal benefit curves
horizontal sum of the individual marginal benefit curves
horizontal sum of the individual demand curves
vertical sum of the individual supply curves

If the marginal benefit of a city's sewage system exceeds the marginal cost, then the city will achieve an efficient use of resources if it __________________.

increases the capacity of the sewage system
decreases the capacity of the sewage system
does not change the capacity of the sewage system
increases the sewerage charge that the residents pay

The table shows the total benefit and total cost of lighthouses. The efficient number of lighthouses is ________.

2
3
1
more than 4

The table shows the total benefit and total cost of lighthouses. If lighthouses are the responsibility of the Department of the Environment, the department will want a budget of ________to install lighthouses.

$9 million
at least $30 million
$21 million
$18 million

The figure shows the total benefit and total cost of national parks. The agency which takes care of national parks wants to supply what quantity?

a
d
b
c

The figure shows the supply of and demand for apples. Initially, 20 baskets of apples are bought each day at $2.00 a basket. The government now taxes apples, and the figure shows the outcome. The price _________, and the sales tax is _______ a basket.

rises to $2.50; $0.50
falls to $1.50; less than $0.50
falls to $1.50; $1.00
rises to $2.50; greater than $0.50

The figure shows the supply of and demand for apples. Initially, 20 baskets of apples are bought each day at $2.00 a basket. The government imposes a tax on apples, and the figure shows the outcome. The tax creates a deadweight loss of _____________ a day.

$10.00
$2.50
$1.25
$7.50

The more _______ the ___________ labor, the _______ is the amount of an income tax that is paid by the employee.

elastic; supply of; greater
elastic; demand for; greater
elastic; demand for; smaller
inelastic; supply of; smaller

A family with an annual income of $150,000 saves $70,000. With no income taxes and a sales tax is 7.5 percent, the family's average tax rate is ___________.

3.5 percent
4.0 percent
7.5 percent
$6,000

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