11. [4] Suppose you observe a regression coefficient in a journal article where f = 2.1. The corresponding 95 percent confidence interval is [- 1.1, 3.4]. The coefficient estimate is statistically significant. 12. [3] In the presence of a negative externality, a tax on the offending good / = MEC (marginal external cost) will yield the socially optimal level of output (Q'). 13. [4] External benefits from a positive externality do not accrue to society in the absence of a Pigouvian subsidy. 14. [4] If a good is a public good, the allocatingly efficient price is p* = 0. 15. [3] If a natural monopoly produced the socially optimal level of output, it would have an economic loss (negative economic profit). 16. [3] The optimal amount of a public good to be provided by the government is the quantity at which the vertical summation of marginal benefits of the public good of each person in the relevant jurisdiction at that quantity is equal to the marginal cost of producing that quantity of the public good. 17. [3] Although monopolies lead to allocationy inefficient outcomes; that is p > MC, they are generally productively/technically efficient. 18. [3] Wagner's law suggests that the more countries spend on the public sector, the greater is national income. (Think especially carefully about this question before answering it; you may want to review Mahdavi [2011] and/or Irandoust [2019, now on Canvas], particularly the latter). 19. [2] Bergstrom and Goodman (1973) find the demand for most public services to be income- inelastic. (note: I made a minor but important error in discussing Bergstrom and Goodman's (1972) paper in the relevant slide deck [2D] that is now fixed - I guess this is now a softball question). 20. [3] The greatest source of local government total revenue is property tax collections. (Again, think especially carefully before answering - look it up!)