Question 1

When property rights are not well established,

Accepted Answer

A)  private goods become public goods.
B)  markets fail to allocate resources efficiently.
C)  the distribution of private goods is unfair.
D)  government resources are used inefficiently.E) A) and D)
F) None of the above

Question 2

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

Accepted Answer

A)  fiscal analysis.
B)  monetary analysis.
C)  welfare analysis.
D)  cost-benefit analysis.E) B) and C)
F) A) and C)

Question 3

An example of a public good would be

Accepted Answer

A)  cable TV service.
B)  a tornado siren.
C)  clothing.
D)  the environment.E) B) and D)
F) A) and D)

Question 4

Excessive fishing occurs because

Accepted Answer

A)  each individual fisherman has little incentive to maintain the species for the next year.
B)  fishermen rely on government managers to worry about fish populations.
C)  fishermen are unionized, so they are not concerned with externalities.
D)  fishermen have other marketable skills and do not fear exploitation of fish reserves.E) B) and C)
F) A) and C)

Question 5

Goods that are rival in consumption but not excludable would be considered

Accepted Answer

A)  natural monopolies.
B)  common resources.
C)  public goods.
D)  private goods.E) A) and C)
F) A) and B)

Question 6

Which of the following would not be considered a private good?

Accepted Answer

A)  tennis shoes
B)  pizza
C)  french fries
D)  cable TV serviceE) B) and D)
F) None of the above

Question 7

A tax on gasoline often reduces road congestion because gasoline

Accepted Answer

A)  and driving are complements.
B)  and driving are substitutes.
C)  is a normal good, while driving is an inferior good.
D)  is an inferior good, while driving is a normal good.E) A) and C)
F) C) and D)

Question 8

In deciding whether a good is a public good,one must determine the

Accepted Answer

A)  incomes of those who benefit from the good.
B)  value of the external benefits that accrue to resource owners.
C)  excludability of the good.
D)  All of the above are correct.E) B) and D)
F) C) and D)

Question 9

Because general knowledge is not excludable,

Accepted Answer

A)  the government contributes to its production.
B)  the cost generally outweighs the benefit to society.
C)  private markets will not supply any general knowledge to society.
D)  general knowledge cannot be "supplied" to the market by anyone since it is not a product.E) All of the above
F) None of the above

Question 10

Four friends decide to meet at a Chinese restaurant for dinner.They decide that each person will order an item off the menu,and they will share all dishes.They will split the cost of the final bill evenly among each of the people at the table.A Tragedy of the Commons problem is likely for each of the following reasons except

Accepted Answer

A)  each person has an incentive to eat as fast as possible since their individual rate of consumption will not affect their individual cost.
B)  there is an externality associated with eating the food on the table.
C)  when one person eats, he may not take into account how his choice affects his friends.
D)  each dish would be both excludable and rival in consumption.E) None of the above
F) A) and D)

Question 11

Table 11-2
There are no lobstering restrictions on Point Judith Sound, RI. A lobsterman on Point Judith Sound can catch 100 lobsters per day, provided he has the sound to himself. Two lobstermen can catch 95 lobsters apiece per day, and three can catch 90 apiece per day. Other numbers are given by the table:
  
The opportunity cost of a day on Point Judith Sound is 25 lobsters per lobsterman. That is, the alternative activity is as valuable as 25 lobsters.
-Refer to Table 11-2.How many lobstermen will decide to go lobstering on Point Judith Sound?

Accepted Answer

A)  1 lobsterman
B)  5 lobstermen
C)  9 lobstermen
D)  10 lobstermenE) C) and D)
F) A) and B)

Question 12

When a good is excludable,

Accepted Answer

A)  one person's use of the good diminishes another person's ability to use it.
B)  people can be prevented from using the good.
C)  no more than one person can use the good at the same time.
D)  everyone will be excluded from using the good.E) B) and C)
F) B) and D)

Question 13

Which of the following is a disadvantage of government provision of a public good?

Accepted Answer

A)  The government lacks information about what people are willing to pay for the good.
B)  The government does not provide enough of any public good.
C)  The private sector can provide all public goods at a lower cost.
D)  None of the above is a disadvantage.E) None of the above
F) A) and B)

Question 14

Depending on congestion,national parks can be either a common resource or a public good.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following goods is excludable and not rival in consumption?

Accepted Answer

A)  a congested toll road
B)  an uncongested toll road
C)  an uncongested nontoll road
D)  a congested nontoll roadE) A) and B)
F) None of the above

Question 16

Which of the following statements is not correct?

Accepted Answer

A)  Some goods that are often thought of as public goods may be private goods in certain circumstances.For example, a lighthouse that protects a privately owned port may be a private good.
B)  Some goods that are often though of a private goods may be public goods in certain circumstances.For example, a candy bar could be a public good.
C)  Antipoverty programs can be an example of a public good because everyone benefits from living in a society with less poverty.
D)  The government must provide national defense because it is impossible to exclude people from its benefit, and the consumption of national defense is nonrival in consumption.E) A) and D)
F) A) and C)

Question 17

Which of the following goods is rival in consumption and excludable?

Accepted Answer

A)  a slice of pizza
B)  cable TV service
C)  a sunset
D)  national defenseE) A) and B)
F) B) and D)

Question 18

A television signal is an example of a good that is

Accepted Answer

A)  private.
B)  nonrival in consumption.
C)  social.
D)  nonexcludable in production.E) A) and C)
F) All of the above

Question 19

Private goods are both

Accepted Answer

A)  excludable and nonrival in consumption.
B)  nonexcludable and rival in consumption.
C)  excludable and rival in consumption.
D)  nonexcludable and nonrival consumption.E) C) and D)
F) None of the above

Question 20

Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?

Accepted Answer

No one owns the wild salmon,while privat...

Exam 11: Public Goods and Common Resources

Private goods are both

Correct Answer
verified

Correct Answer
verified

Depending on congestion,national parks can be either a common resource or a public good.

Correct Answer
verified

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

Correct Answer
verified

A tax on gasoline often reduces road congestion because gasoline

Correct Answer
verified

In deciding whether a good is a public good,one must determine the

Correct Answer
verified

Because general knowledge is not excludable,

Correct Answer
verified

An example of a public good would be

Correct Answer
verified

Goods that are rival in consumption but not excludable would be considered

Correct Answer
verified

Excessive fishing occurs because

Correct Answer
verified

A television signal is an example of a good that is

Correct Answer
verified

Which of the following would not be considered a private good?

Correct Answer
verified

Which of the following goods is rival in consumption and excludable?

Correct Answer
verified

Which of the following goods is excludable and not rival in consumption?

Correct Answer
verified

When property rights are not well established,

Correct Answer
verified

Correct Answer
verified

Which of the following is a disadvantage of government provision of a public good?

Correct Answer
verified

Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?

Correct Answer
verified
No one owns the wild salmon,while privat...
View Answer

Which of the following statements is not correct?

Correct Answer
verified

When a good is excludable,

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Private goods are both

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Depending on congestion,national parks can be either a common resource or a public good.

Correct AnswerverifiedShow Answer

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

Correct AnswerverifiedShow Answer

A tax on gasoline often reduces road congestion because gasoline

Correct AnswerverifiedShow Answer

In deciding whether a good is a public good,one must determine the

Correct AnswerverifiedShow Answer

Because general knowledge is not excludable,

Correct AnswerverifiedShow Answer

An example of a public good would be

Correct AnswerverifiedShow Answer

Goods that are rival in consumption but not excludable would be considered

Correct AnswerverifiedShow Answer

Excessive fishing occurs because

Correct AnswerverifiedShow Answer

A television signal is an example of a good that is

Correct AnswerverifiedShow Answer

Which of the following would not be considered a private good?

Correct AnswerverifiedShow Answer

Which of the following goods is rival in consumption and excludable?

Correct AnswerverifiedShow Answer

Which of the following goods is excludable and not rival in consumption?

Correct AnswerverifiedShow Answer

When property rights are not well established,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of government provision of a public good?

Correct AnswerverifiedShow Answer

Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?

Correct AnswerverifiedNo one owns the wild salmon,while privat...View AnswerShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

When a good is excludable,

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
No one owns the wild salmon,while privat...
View Answer

Correct Answer
verified

Correct Answer
verified