Question 1

When the absence of property rights causes a market failure,the government can potentially solve the problem

Accepted Answer

A)   by clearly defining property rights.
B)   through regulation.
C)   by supplying the good itself.
D)   All of the above are correct.

Question 2

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Accepted Answer

A)   subsidizing basic research
B)   building lighthouses
C)   toll charges on congested roads
D)   cost-benefit analysis

Question 3

Goods that are excludable include both

Accepted Answer

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

Question 4

The Tragedy of the Commons can be corrected by

Accepted Answer

A)   conducting a cost-benefit analysis.
B)   assigning property rights to individuals.
C)   providing government subsidies for the resource.
D)   making certain everyone in the economy has access to the resource.

Question 5

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 environment

Question 6

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 and that the residents have agreed to split the cost of building the park equally.If the residents decide to build a park with size equal to the number of acres that maximizes total surplus from the park,how much total surplus will Mary receive?

Accepted Answer

A)   -$6
B)   -$3
C)   $3
D)   $10

Question 7

Roads can be considered either public goods or common resources,depending on how congested they are.

Accepted Answer

A) True 
 B)False

Question 8

A streetlight is a

Accepted Answer

A)   private good.
B)   club good.
C)   common resource.
D)   public good.

Question 9

Which of the following is not a common resource?

Accepted Answer

A)   clean air
B)   clean water
C)   open grazing land
D)   national defense

Question 10

Which of the following is not a common resource?

Accepted Answer

A)   congested roads
B)   clean water
C)   wild gorillas
D)   a fireworks display

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) .
 
-Refer to Table 11-3.What is the value of the 13ᵗʰ unit of national defense in Nirvananville?

Accepted Answer

A)   $8
B)   $14
C)   $18
D)   $24

Question 12

Why has the value of ivory threatened the extinction of the elephant,whereas the value of beef has enhanced the survival of the cow?

Accepted Answer

A)   Cows are a common resource, whereas elephants are owned by governments.
B)   Elephants are larger than cows, requiring more economic resources.
C)   Elephants live in Africa, where economic resources are scarce.
D)   Elephants are a common resource, whereas cows are privately owned.

Question 13

Economists think that the best way to determine the value of a human life is to

Accepted Answer

A)   evaluate the value of a person's expected earnings in the labor market.
B)   evaluate the risks people are willing to take and what they would have to be paid to take them.
C)   determine a person's accumulated wealth at the time of death.
D)   do nothing; human life is priceless.

Question 14

The national defense of the United States is not excludable because

Accepted Answer

A)   my enjoyment of the national defense does not diminish your enjoyment of the national defense of the United States.
B)   my enjoyment of the national defense does diminish your enjoyment of the national defense of the United States.
C)   once the nation is defended, it is impossible to prevent any single person from enjoying the benefit of this defense.
D)   once the nation is defended, it is possible to prevent any single person from enjoying the benefit of this defense.

Question 15

A cable television broadcast of a movie is

Accepted Answer

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

Question 16

A common theme among examples of market failure is

Accepted Answer

A)   the good being provided harms society in some systematic way.
B)   some item of value does not have an owner with the legal authority to control it.
C)   cost-benefit analysis will show that private markets should provide the goods and services.
D)   government intervention decreases the social benefits.

Question 17

Both private goods and club goods are

Accepted Answer

A)   rival in consumption.
B)   nonrival in consumption.
C)   excludable.
D)   nonexcludable.

Question 18

An example of the "Tragedy of the Commons" is litter in the picnic area of a local park.

Accepted Answer

A) True 
 B)False

Question 19

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.

Question 20

Which of the following is not a characteristic of a public good?

Accepted Answer

A)   It is nonexcludable.
B)   It is not diminished or depreciated as additional people consume the good.
C)   Its benefits cannot be withheld from anyone.
D)   Because it is a free good, there is no opportunity cost.

Exam 11: Public Goods and Common Resources.

A cable television broadcast of a movie is

Correct Answer
verified

The national defense of the United States is not excludable because

Correct Answer
verified

Goods that are excludable include both

Correct Answer
verified

Which of the following is not a common resource?

Correct Answer
verified

Which of the following is not a characteristic of a public good?

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

A streetlight is a

Correct Answer
verified

Roads can be considered either public goods or common resources,depending on how congested they are.

Correct Answer
verified

An example of the "Tragedy of the Commons" is litter in the picnic area of a local park.

Correct Answer
verified

A common theme among examples of market failure is

Correct Answer
verified

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Correct Answer
verified

Why has the value of ivory threatened the extinction of the elephant,whereas the value of beef has enhanced the survival of the cow?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Economists think that the best way to determine the value of a human life is to

Correct Answer
verified

Which of the following is not a common resource?

Correct Answer
verified

The Tragedy of the Commons can be corrected by

Correct Answer
verified

When the absence of property rights causes a market failure,the government can potentially solve the problem

Correct Answer
verified

Both private goods and club goods are

Correct Answer
verified

Exam 11: Public Goods and Common Resources.

A cable television broadcast of a movie is

Correct AnswerverifiedShow Answer

The national defense of the United States is not excludable because

Correct AnswerverifiedShow Answer

Goods that are excludable include both

Correct AnswerverifiedShow Answer

Which of the following is not a common resource?

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of a public good?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A streetlight is a

Correct AnswerverifiedShow Answer

Roads can be considered either public goods or common resources,depending on how congested they are.

Correct AnswerverifiedShow Answer

An example of the "Tragedy of the Commons" is litter in the picnic area of a local park.

Correct AnswerverifiedShow Answer

A common theme among examples of market failure is

Correct AnswerverifiedShow Answer

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Correct AnswerverifiedShow Answer

Why has the value of ivory threatened the extinction of the elephant,whereas the value of beef has enhanced the survival of the cow?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economists think that the best way to determine the value of a human life is to

Correct AnswerverifiedShow Answer

Which of the following is not a common resource?

Correct AnswerverifiedShow Answer

The Tragedy of the Commons can be corrected by

Correct AnswerverifiedShow Answer

When the absence of property rights causes a market failure,the government can potentially solve the problem

Correct AnswerverifiedShow Answer

Both private goods and club goods are

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

Correct Answer
verified

Correct Answer
verified