Question 1

A pizza is

Accepted Answer

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

Question 2

It is commonly argued that national defense is a public good.Nevertheless,the weapons used by the U.S.military are produced by private firms.We can conclude that

Accepted Answer

A)   resources would be used more efficiently if the government produced the weapons.
B)   resources would be used more efficiently if private firms provided national defense.
C)   weapons are rival in consumption and excludable,but national defense is not rival in consumption and not excludable.
D)   national defense is rival in consumption and excludable,but weapons are not rival in consumption and not excludable.E) A) and C)
F) A) and B)

Question 3

Even economists who advocate small government agree that national defense is a good that the government should provide.

Accepted Answer

A) True 
 B)False

Question 4

The enclosure movement in England in the 17th century represented an attempt to transform

Accepted Answer

A)   a public good into a private good.
B)   a private good into a public good.
C)   a private good into a common resource.
D)   a common resource into a private good.E) C) and D)
F) All of the above

Question 5

Variable tolls on roads

Accepted Answer

A)   are politically unpopular because people do not like the idea of paying for a good that they used to consume without paying for it directly.
B)   rise when traffic volume increases to ensure the speed on the road is kept high.
C)   are an effective way of correcting the common resource problem on roads.
D)   All of the above are correct.E) B) and C)
F) C) and D)

Question 6

The U.S.patent system

Accepted Answer

A)   makes general knowledge excludable.
B)   makes specific,technical knowledge excludable.
C)   creates a disincentive to invent.
D)   Both a and b are correct.E) All of the above
F) A) and D)

Question 7

Figure 11-1
 
-Refer to Figure 11-1.The box labeled C represents

Accepted Answer

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

Question 8

To increase safety at a bad intersection,you must decide whether to install a traffic light in your hometown at a cost of $25,000.If the traffic light reduces the risk of fatality by 0.3 percent,and the value of a human life is estimated to be $10 million,you should

Accepted Answer

A)   install the light because the expected benefit of $30,000 is greater than the cost.
B)   install the light because the expected benefit of $25,000 is greater than the cost.
C)   not install the light because the expected benefit of $25,000 is only equal to the cost.
D)   not install the light because the expected benefit of $3,000 is less than the cost.E) B) and C)
F) C) and D)

Question 9

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

Accepted Answer

A)   a can of Coca-Cola
B)   cable TV service
C)   a fireworks display
D)   the environmentE) B) and C)
F) C) and D)

Question 10

A vacation home in Malibu is

Accepted Answer

A)   not rival in consumption and excludable.
B)   rival in consumption and excludable.
C)   not rival in consumption and not excludable.
D)   rival in consumption and not excludable.E) A) and B)
F) A) and C)

Question 11

Which of the following is most likely to face extinction?

Accepted Answer

A)   dogs living as pets in households
B)   dairy cows living on farms and producing milk
C)   bald eagles living in zoos
D)   tigers living in the wildE) B) and D)
F) All of the above

Question 12

Table 11-1
Consider the town of Anywhere with only three residents,Mary,Bill,and Tricia.The three residents are trying to determine how large,in acres,they should build the public park.The table below shows each resident's willingness to pay for each acre of the park.
 
-Refer to Table 11-1.Suppose the cost to build the park is $33 per acre.How many acres should the park be to maximize total surplus from the park in Anywhere?

Accepted Answer

A)   2 acres
B)   3 acres
C)   4 acres
D)   5 acresE) A) and C)
F) B) and D)

Question 13

Which of the following goods is rival and excludable?

Accepted Answer

A)   an uncongested toll road
B)   an uncongested nontoll road
C)   a congested nontoll road
D)   a congested toll roadE) B) and D)
F) A) and C)

Question 14

One solution to the "Tragedy of the Commons" is to turn the common resource into a private good.

Accepted Answer

A) True 
 B)False

Question 15

Mitch hunts deer.His shotgun is

Accepted Answer

A)   a private good and the deer he hunts are common resources.
B)   a private good and the deer he hunts are public goods.
C)   rival in consumption and the deer he hunts are not rival in consumption.
D)   not rival in consumption and the deer he hunts are not rival in consumption.E) All of the above
F) C) and D)

Question 16

Table 11-5
A small strip mall contains four retail stores,and crime has recently been on the increase in the neighborhood of the strip mall.The owners of the four stores - Stores A,B,C,and D - are considering contributing to a pool of money that will be used to hire up to 4 security guards.The table represents their willingness to pay,that is,the maximum amount that each store owner is willing to contribute,per day,to hire each security guard.
 
-Refer to Table 11-5.Suppose the cost to hire each guard is $100 per day and the 4 store owners have agreed to split the costs of hiring guards equally.Which store owner(s) would be opposed to hiring any guards?

Accepted Answer

A)   only the owner of Store C
B)   only the owners of Stores A and C
C)   only the owners of Stores A,B,and C
D)   All 4 store owners would be opposed to hiring any guards.E) None of the above
F) A) and B)

Question 17

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) All of the above
F) B) and D)

Question 18

Pete is a non-union employee at The Electric Co.The majority of the employees at The Electric Co.are unionized.The union at The Electric Co.has negotiated very good benefits.Even though he is not a union member and he does not have to pay union dues,Pete receives all the benefits that the union has negotiated.Pete's behavior is an example of

Accepted Answer

A)   rivalry.
B)   a barrier to entry.
C)   free riding.
D)   Taft-Hartley opposition.E) C) and D)
F) B) and D)

Question 19

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

Accepted Answer

A)   a tornado siren
B)   an uncongested toll road
C)   a home
D)   the environmentE) A) and B)
F) A) and C)

Question 20

Which of the following statements is correct?

Accepted Answer

A)   The efficient provision of private goods is intrinsically more difficult than the efficient provision of public goods.
B)   The efficient provision of public goods is intrinsically more difficult than the efficient provision of private goods.
C)   Private markets provide quantities of public goods that exceed the socially-efficient quantities of those goods.
D)   Private decision makers utilize quantities of common resources that fall short of the socially-efficient quantities of those resources.E) A) and D)
F) A) and C)

Exam 11: Public Goods and Common Resources

Which of the following statements is correct?

Correct Answer
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The U.S.patent system

Correct Answer
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It is commonly argued that national defense is a public good.Nevertheless,the weapons used by the U.S.military are produced by private firms.We can conclude that

Correct Answer
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Which of the following goods is nonrival in consumption and excludable?

Correct Answer
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A pizza is

Correct Answer
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Correct Answer
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Figure 11-1 -Refer to Figure 11-1.The box labeled C represents

Correct Answer
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To increase safety at a bad intersection,you must decide whether to install a traffic light in your hometown at a cost of $25,000.If the traffic light reduces the risk of fatality by 0.3 percent,and the value of a human life is estimated to be $10 million,you should

Correct Answer
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Even economists who advocate small government agree that national defense is a good that the government should provide.

Correct Answer
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When property rights are not well established,

Correct Answer
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Correct Answer
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Mitch hunts deer.His shotgun is

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

Correct Answer
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Variable tolls on roads

Correct Answer
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Which of the following is most likely to face extinction?

Correct Answer
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Correct Answer
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The enclosure movement in England in the 17^th century represented an attempt to transform

Correct Answer
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Which of the following goods is rival and excludable?

Correct Answer
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A vacation home in Malibu is

Correct Answer
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One solution to the "Tragedy of the Commons" is to turn the common resource into a private good.

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

The U.S.patent system

Correct AnswerverifiedShow Answer

It is commonly argued that national defense is a public good.Nevertheless,the weapons used by the U.S.military are produced by private firms.We can conclude that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A pizza is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.The box labeled C represents

Correct AnswerverifiedShow Answer

To increase safety at a bad intersection,you must decide whether to install a traffic light in your hometown at a cost of $25,000.If the traffic light reduces the risk of fatality by 0.3 percent,and the value of a human life is estimated to be $10 million,you should

Correct AnswerverifiedShow Answer

Even economists who advocate small government agree that national defense is a good that the government should provide.

Correct AnswerverifiedShow Answer

When property rights are not well established,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Mitch hunts deer.His shotgun is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Variable tolls on roads

Correct AnswerverifiedShow Answer

Which of the following is most likely to face extinction?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The enclosure movement in England in the 17th century represented an attempt to transform

Correct AnswerverifiedShow Answer

Which of the following goods is rival and excludable?

Correct AnswerverifiedShow Answer

A vacation home in Malibu is

Correct AnswerverifiedShow Answer

One solution to the "Tragedy of the Commons" is to turn the common resource into a private good.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The enclosure movement in England in the 17^th century represented an attempt to transform

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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