Question 1

Goods that are not excludable include both

Accepted Answer

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

Question 2

A New York legislator wanted to create a deposit on cigarettes butts.If implemented,people would have the incentive to (1) not toss cigarette butts onto public streets and sidewalks,and (2) pick butts up to redeem them for the cash.The degradation of the environment from littered cigarette butts is a

Accepted Answer

A)   private goods problem.
B)   Nash equilibrium.
C)   Tragedy of the Commons.
D)   cost-benefit equilibrium.E) C) and D)
F) B) and C)

Question 3

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Accepted Answer

A)   $1 million.
B)   $5 million.
C)   $10 million.
D)   $20 million.E) A) and C)
F) B) and D)

Question 4

Figure 11-1
 
-Refer to Figure 11-1.Which of the following items is not a clear-cut example of the type of good represented by Box D?

Accepted Answer

A)   a fireworks display in a town with many residents
B)   national defense
C)   general knowledge
D)   a lighthouseE) A) and B)
F) All of the above

Question 5

The Tragedy of the Commons describes

Accepted Answer

A)   government regulation that is necessary to combat externalities.
B)   overuse of a common resource relative to its economically efficient use.
C)   the nonrivalry feature of a common resource.
D)   an effective cost-benefit analysis.E) All of the above
F) A) and B)

Question 6

Free goods are usually efficiently allocated without government intervention.

Accepted Answer

A) True 
 B)False

Question 7

When goods do not have a price,which of the following primarily ensures that the good is produced?

Accepted Answer

A)   buyers
B)   sellers
C)   government
D)   the marketE) A) and D)
F) B) and C)

Question 8

Goods that are not rival in consumption include both

Accepted Answer

A)   private goods and common resources.
B)   club goods and public goods.
C)   common resources and public goods.
D)   private goods and club goods.E) None of the above
F) C) and D)

Question 9

Each of the following explains why cost-benefit analysis is difficult except

Accepted Answer

A)   there is no price with which to judge the value of a public good.
B)   surveys are often biased and unreliable.
C)   it is difficult to identify all factors that influence costs and benefits of public goods.
D)   government projects rarely have sufficient funding to complete them on time.E) None of the above
F) A) and D)

Question 10

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

Accepted Answer

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

Question 11

Table 11-3
This table describes the defense demands for three equal sized groups of people in Nirvanaville.The second,third,and fourth column shows the quantity that a group will demand for a given price (the first column) .
 rd unit of national defense in Nirvanaville? A)  $0 B)  $2 C)  $4 D)  $6" class="answers-bank-image d-inline" rel="preload" >
-Refer to Table 11-3.What is the value of the 33rd unit of national defense in Nirvanaville?

Accepted Answer

A)   $0
B)   $2
C)   $4
D)   $6E) All of the above
F) A) and B)

Question 12

Some goods can be classified as either public goods or private goods depending on the circumstances.

Accepted Answer

A) True 
 B)False

Question 13

A cheeseburger is a

Accepted Answer

A)   common resource,because it is rival in consumption but not excludable.
B)   public good,because it is rival in consumption but not excludable.
C)   public good,because it is excludable and rival in consumption.
D)   private good,because it is excludable and rival in consumption.E) C) and D)
F) B) and D)

Question 14

A free rider is a person who pays for a good but does not receive the benefit of it.

Accepted Answer

A) True 
 B)False

Question 15

Figure 11-1
 
-Refer to Figure 11-1.To which of the boxes - A,B,C,or D - does the phenomenon of free riding most clearly apply?

Accepted Answer

The phenomenon of fr...

Question 16

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Accepted Answer

A) True 
 B)False

Question 17

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

Accepted Answer

A)   assigning land property rights.
B)   auctioning off sheep-grazing permits.
C)   taxing sheep flocks.
D)   subsidizing sheep flocks.E) B) and D)
F) A) and C)

Question 18

On hot summer days,electricity-generating capacity is sometimes stretched to the limit.At these times,electric companies may ask people to voluntarily cut back on their use of electricity.An economist would suggest that

Accepted Answer

A)   every electric customer has an incentive to prevent the system from overloading,so this voluntary approach is the most efficient.
B)   it would be more efficient if the electric company raised its rates for electricity at peak times.
C)   it would be more efficient to have a lottery to decide who had to cut back their use of electricity at peak times.
D)   it would be more efficient to force everyone to cut their usage of electricity by the same amount.E) B) and C)
F) B) and D)

Question 19

Highway engineers want to improve a dangerous stretch of highway.They expect that it will reduce the risk of someone dying in an accident from 4.1 percent to 1.5 percent over the life of the highway.If a human life is worth $4.2 million,then the project is worth doing as long as it does not cost more than

Accepted Answer

A)   $67,200.
B)   $109,200.
C)   $274,500.
D)   $1.6 million.E) A) and C)
F) C) and D)

Question 20

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) All of the above

Exam 11: Public Goods and Common Resources

A free rider is a person who pays for a good but does not receive the benefit of it.

Correct Answer
verified

On hot summer days,electricity-generating capacity is sometimes stretched to the limit.At these times,electric companies may ask people to voluntarily cut back on their use of electricity.An economist would suggest that

Correct Answer
verified

Each of the following explains why cost-benefit analysis is difficult except

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1.To which of the boxes - A,B,C,or D - does the phenomenon of free riding most clearly apply?

Correct Answer
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The phenomenon of fr...
View Answer

Correct Answer
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A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Correct Answer
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The Tragedy of the Commons describes

Correct Answer
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When goods do not have a price,which of the following primarily ensures that the good is produced?

Correct Answer
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Goods that are not excludable include both

Correct Answer
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Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Correct Answer
verified

Correct Answer
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Excessive fishing occurs because

Correct Answer
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Figure 11-1 -Refer to Figure 11-1.Which of the following items is not a clear-cut example of the type of good represented by Box D?

Correct Answer
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A cheeseburger is a

Correct Answer
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Free goods are usually efficiently allocated without government intervention.

Correct Answer
verified

Goods that are not rival in consumption include both

Correct Answer
verified

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

Correct Answer
verified

Some goods can be classified as either public goods or private goods depending on the circumstances.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Exam 11: Public Goods and Common Resources

A free rider is a person who pays for a good but does not receive the benefit of it.

Correct AnswerverifiedShow Answer

On hot summer days,electricity-generating capacity is sometimes stretched to the limit.At these times,electric companies may ask people to voluntarily cut back on their use of electricity.An economist would suggest that

Correct AnswerverifiedShow Answer

Each of the following explains why cost-benefit analysis is difficult except

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.To which of the boxes - A,B,C,or D - does the phenomenon of free riding most clearly apply?

Correct AnswerverifiedThe phenomenon of fr...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Correct AnswerverifiedShow Answer

The Tragedy of the Commons describes

Correct AnswerverifiedShow Answer

When goods do not have a price,which of the following primarily ensures that the good is produced?

Correct AnswerverifiedShow Answer

Goods that are not excludable include both

Correct AnswerverifiedShow Answer

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Excessive fishing occurs because

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.Which of the following items is not a clear-cut example of the type of good represented by Box D?

Correct AnswerverifiedShow Answer

A cheeseburger is a

Correct AnswerverifiedShow Answer

Free goods are usually efficiently allocated without government intervention.

Correct AnswerverifiedShow Answer

Goods that are not rival in consumption include both

Correct AnswerverifiedShow Answer

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

Correct AnswerverifiedShow Answer

Some goods can be classified as either public goods or private goods depending on the circumstances.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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The phenomenon of fr...
View Answer

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