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Pubh 6012 Final Paper Questions And Correct Answers Full Review Resource

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PUBH 6012 FINAL PAPER QUESTIONS AND CORRECT ANSWERS FULL REVIEW RESOURCE

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PUBH 6012 FINAL STUDY GUIDE TEST
PAPER QUESTIONS AND SOLUTIONS
GRADED APLUS

●● Market failure: public goods
Answer: Non-rival: more than one person can enjoy them
simultaneously
Nonexclusive: impossible or too costly to exclude individuals from
enjoying the good
Consumption of public goods leads to free riders


●● Market failure: externalities
Answer: Positive or negative impact when one person's actions create a
benefit of imposing a cost on others (e.g. herd immunity/not getting
vaccinated, mosquito abatement, hazardous waste disposal)
Leads to underproduction or overproduction of goods from society's
perspective


●● Market failure: government interventions
Answer: Govt directly provides goods
Govt finances provision of goods
Taxes/subsidies
Controls on market entry (certificate of need, drug approvals)

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