The budget of a government bureau increases beyond the efficient level if

1.The budget of a government bureau increases beyond the efficient level if​ _______.

A.bureaucrats are rationally ignorant

B.the good or service the bureau produces is a public good

C.special interest lobbying is combined with rational ignorance of some voters

D.voters are well informed

2.Choose the statement about ITQs that is incorrect.

A.The major problem with ITQs is that they create a monopoly.

B.An ITQ is a production limit that is assigned to an individual who is free to transfer the quota to someone else.

C.When ITQs are​ used, no one has an incentive to cheat and exceed the quota because to do so would raise marginal cost above price and result in a loss on the marginal catch.

D.The market price of a an ITQ equals the marginal social benefit minus the marginal cost.

3.Beth is​ _____ when she is protected by the​ nation’s military but does not pay anything for the protection.

A.an exempt taxpayer

B.a public rider

C.​pro-military

D.a free rider

 

 

answer:

1.
D.voters are well informed

2.
D.The market price of a an ITQ equals the marginal social benefit minus the marginal cost.

3.
D. A free rider
National Defene is a public good, a classic problem for public goods is that of free riders.

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