Why are public goods not produced in sufficient quantities by private markets? Which of the following are public goods? a.  Air bagsb.  Pencilsc.  Cycle helmetsd.  City street lightse.  Contact lensesP

Calculate the official poverty threshold annual income for a family of four. Assume the minimally acceptable diet is estimated to be $5 per person per day and the minimum wage is $5 per hour. Will a head of a family of four earn the poverty threshold you have calculated? What are in-kind transfers? Give examples.

Would free health care reduce poverty, as measured by the government? Would free public housing, day care, and job training for the poor reduce the poverty rate? Explain. What percentage of families in the United States was classified as poor? Which demographic groups have higher poverty rates?

List the major government cash assistance and in-kind transfer programs to assist the poor. Which of the programs are not exclusively for the poor? What are three major criticisms of welfare?

As shown in Exhibit 11, the perfect equality line is drawn between points a. W and Y along the curve.b. X and Z.c. W and Y along the straight line.d. W and X. As shown in Exhibit 11, 20 percent of families earned a cumulative share of about percent of income. a. 5b. 10c. 30d.

Price-fixing agreements are among the monopolistic restraint-of-trade practices prohibited by Section 1 of the Sherman Act. The Supreme Court has concluded that a formal agreement is not necessary to prove conspiracy. Instead, conspiracy may be inferred from the acts of the accused even if the consequences might be considered socially desirable. The presidents of the

The local water company is considered to be a natural monopoly, and the government prohibits other firms from competing with it. If a natural monopoly can produce water at a lower price than other firms, then why would the government protect the water company from competitors?

A controversy in many antitrust court cases involves the definition of the relevant market for a firm’s product. How would you argue in the Alcoa case that the government’s claim of the firm’s high market share was in error?

Which of the following is illegal under the Sherman Act? a. Attempts to monopolizeb. Price-fixingc. Formation of cartelsd. All of the above are illegal.

Officers of five large building-materials companies meet and agree that none of them will submit bids on government contracts lower than an agreed-upon level. This is an example of a. price-fixing.b. vertical restriction.c. a tying contract.d. an interlocking directorate.