Left to their own, private markets tend to:
a. under-allocate resources to public goods.
b. allocate the economically efficient amount of resources to public goods.
c. over-allocate resources to public goods.
d. produce no public goods.
QUESTION 2When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information
b. decisions are being moved from those with stronger incentives to make good decisions
c. decisions are being moved from those with more of the relevant information
d. decisions are being moved from those with weaker incentives to make good decisions
QUESTION 3Factors affecting medical care demand include
a. health status.
b. demographic characteristics.
c. economic standing.
d. physician factors.
e. all of the above.
QUESTION 4A non-rival good is a good which:
a. is produced by a monopoly.
b. is produced by a cartel.
c. can provide benefits to additional users at a zero marginal cost.
d. is sold in a single market.
QUESTION 5When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information
b. decisions are being moved to those with stronger incentives to make good decisions
c. decisions are being moved to those with more of the relevant information
d. decisions are being moved from those with weaker incentives to make good decisions
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