Why Might It Be Economically Efficient to Offer Access to an Uncongested

question 40

Multiple Choice

Why might it be economically efficient to offer access to an uncongested art gallery or museum at a price of zero?

• A)because they are non-rivalrous and non-excludable and therefore should be provided at a price of zero
• B)because the marginal benefit received by the visitor is zero,and marginal benefits and marginal cost should be equal
• C)because the marginal cost of providing access to one more visitor is zero,while the visitor has a positive marginal benefit
• D)because it is good for society if more people visit art galleries and museums
• E)because they are public goods,which would not be provided by the free market

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Definitions:

Parametric Tests

Statistical tests that make assumptions about the parameters of the distribution(s) from which one's data are drawn.

Wilcoxon Rank Sum Test

A nonparametric statistical hypothesis test used for comparing two independent samples to assess whether their population mean ranks differ.

Un-standardized Test Statistic

An un-standardized test statistic measures the degree of deviation from the null hypothesis without adjusting for scale or variability in the data.

Standardized Test Statistic

A value calculated from sample data that is used to assess the viability of a null hypothesis in the context of a significance test.