alleryStart learning →Because of free riding, a public good may be what?
- Over-produced
- Fully excludable
- Perfectly priced
- Under-produced
Show answer and solution
Correct answer: D. Under-produced
Few will pay, so supply tends to fall short of what society wants.
CA Foundation Public Finance — practice questions — page 2
Explore 78 free Public Finance questions in CA Foundation Business Economics. Open each question or exercise to read its content, reference answers and available explanation.
Practise Public Finance with Quill →Public Finance questions and exercises with answers
Showing questions 31–60 of 78.
Because of free riding, a public good may be what?Read the answer and worked solution →Who articulated the modern mathematical theory of public goods?Read the answer and worked solution →In which year did Samuelson publish The Pure Theory of Public Expenditure?Read the answer and worked solution →Optimal public good provision needs summed marginal valuations to equal what?Read the answer and worked solution →Two people value a park at $200 and $100; it costs $225. Net surplus?Read the answer and worked solution →Why is efficient Lindahl taxation hard in practice?Read the answer and worked solution →Goods meeting non-rivalry and non-excludability only partly are what?Read the answer and worked solution →How are public goods typically financed?Read the answer and worked solution →Why is the private sector often reluctant to supply public goods?Read the answer and worked solution →Fiscal policy uses which two tools to influence the economy?Read the answer and worked solution →Fiscal policy is based on the theories of which economist?Read the answer and worked solution →Macro use of fiscal policy developed in reaction to which event?Read the answer and worked solution →Which policy deals with the money supply and interest rates?Read the answer and worked solution →Which fiscal stance suits an economy in neither recession nor expansion?Read the answer and worked solution →Which fiscal stance is usually adopted during a recession?Read the answer and worked solution →Which measure is an example of expansionary fiscal policy?Read the answer and worked solution →Raising tax rates and cutting government spending is which stance?Read the answer and worked solution →When is contractionary fiscal policy typically employed?Read the answer and worked solution →Why are cyclically adjusted figures used to judge fiscal stance?Read the answer and worked solution →If revenue cannot cover bond interest, a nation may do what?Read the answer and worked solution →In developing economies, fiscal policy mainly aims to improve what?Read the answer and worked solution →What can a government do with a budget surplus when inflation is too high?Read the answer and worked solution →Keynesians say which pair of steps best raises aggregate demand?Read the answer and worked solution →Crowding out of private investment works through changes in what?Read the answer and worked solution →Under Ricardian equivalence, how do households react to a current deficit?Read the answer and worked solution →A negative government budget balance is called what?Read the answer and worked solution →In economics, the government deficit is what kind of variable?Read the answer and worked solution →Fiscal deficit equals the primary deficit plus what?Read the answer and worked solution →Extra borrowing needed at the low point of the business cycle is called what?Read the answer and worked solution →Which deficit remains across the whole business cycle?Read the answer and worked solution →
Worked practice questions
Who articulated the modern mathematical theory of public goods?
- Ronald Coase
- Friedrich Hayek
- Milton Friedman
- Paul A. Samuelson
Show answer and solution
Correct answer: D. Paul A. Samuelson
Samuelson formalised public goods mathematically, building on Wicksell and Lindahl.
In which year did Samuelson publish The Pure Theory of Public Expenditure?
- 1971
- 1936
- 1920
- 1954
Show answer and solution
Correct answer: D. 1954
Samuelson's formal definition of collective consumption goods dates to 1954.
How to practise
- Choose a Public Finance question and try to work out your answer.
- Open the question to check the correct answer and read its worked solution.
- Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.