Question 1

An example of a public good that the government has made excludable is:

Accepted Answer

A)  toll roads.
B)  city buses.
C)  state colleges.
D)  All of these are excludable public goods.

Question 2

Which of the following is likely to cause a market failure and be overconsumed?

Accepted Answer

A)  Grazing pastureland
B)  Cable TV
C)  Public health
D)  Education

Question 3

Fish in the ocean would be considered:

Accepted Answer

A)  a common resource.
B)  a private good.
C)  a public good.
D)  an artificially scarce good.

Question 4

An example of a good that is rival in consumption is:

Accepted Answer

A)  a hamburger.
B)  radio signals broadcast over the air.
C)  national defense.
D)  None of these goods is rival in consumption.

Question 5

The tragedy of the commons is:

Accepted Answer

A)  the undersupply of a public good due to people not wanting to pay for a publicly common good.
B)  the disappearance of certain markets due to the lack of willingness to pay by individuals,leading to collective misfortune.
C)  the depletion of a common resource due to individually rational but collectively inefficient overconsumption.
D)  None of these statements is correct.

Question 6

A common resource is:

Accepted Answer

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

Question 7

Not having to pay for a good leads to:

Accepted Answer

A)  overconsumption.
B)  underconsumption.
C)  oversupply.
D)  None of these statements is true.

Question 8

An example of a public good that is difficult to make excludable is:

Accepted Answer

A)  sewer systems.
B)  fire protection.
C)  national defense.
D)  All of these are nonexcludable public goods.

Question 9

The tragedy of the commons arises from:

Accepted Answer

A)  the combination of rivalry and nonexcludability.
B)  the good being rival.
C)  the good being excludable.
D)  the combination of rivalry and excludability.

Question 10

Goods that are rival in consumption and excludable are:

Accepted Answer

A)  a common resource.
B)  a private good.
C)  a public good.
D)  an artificially scarce good.

Question 11

An example of a public good is:

Accepted Answer

A)  health.
B)  cleanliness.
C)  radio signals.
D)  All of these are public goods.

Question 12

If the punishment is _________,or the likelihood of getting caught is _________,the cost associated with breaking a ban may not be high enough to change the trade-off that consumers face.

Accepted Answer

A)  not severe;low
B)  severe;high
C)  severe;low
D)  not severe;high

Question 13

Wikipedia is an example of:

Accepted Answer

A)  a public good.
B)  a private good.
C)  a common resource.
D)  an artificially scarce resource.

Question 14

One "design principle" that makes informal,community-based solutions to public goods and common resource problems more effective is:

Accepted Answer

A)  the government setting clear rules for use.
B)  individual pledges to self-monitor their actions.
C)  clear distinctions between who is and is not allowed to access the resource.
D)  All of these are important to the effectiveness of community-based solutions.

Question 15

Elinor Ostrom won the 2009 Nobel Prize in economics for her research showing:

Accepted Answer

A)  social norms can sometimes be powerful enough for commonly held property to be managed extremely well.
B)  social norms are not an effective solution for the management of commonly held property.
C)  that privatization of public goods is the most effective solution to market failure associated with commonly held property.
D)  government provision of public goods is the most efficient solution to the tragedy of the commons problem.

Question 16

Bans and quotas ___________ in situations where it is difficult or costly for authorities to monitor and punish rule-breakers.

Accepted Answer

A)  rarely succeed
B)  often succeed
C)  sometimes succeed
D)  always succeed

Question 17

Which of the following is most likely to be overconsumed?

Accepted Answer

A)  Sparkling water
B)  Tap water
C)  Bottled water
D)  None of these is likely to be overconsumed.

Question 18

When the government privatizes a common resource,it:

Accepted Answer

A)  forces the owner to consider all the costs and benefits of their consumption choices.
B)  creates excludability.
C)  increases efficiency.
D)  All of these statements are true.

Question 19

Which of the following goods is most likely to be overconsumed?

Accepted Answer

A)  Fish in the ocean
B)  Chickens on a farm
C)  Horses on a ranch
D)  None of these is likely to be overconsumed.

Question 20

If you can't prevent people from consuming something,then:

Accepted Answer

A)  they have little reason to pay for using it.
B)  the good is not excludable.
C)  individuals will likely use it for free.
D)  All of these statements are true.

Exam 19: Public Goods and Common Resources

Bans and quotas ___________ in situations where it is difficult or costly for authorities to monitor and punish rule-breakers.

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An example of a public good that is difficult to make excludable is:

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If you can't prevent people from consuming something,then:

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An example of a public good is:

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The tragedy of the commons is:

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Goods that are rival in consumption and excludable are:

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An example of a public good that the government has made excludable is:

Correct AnswerverifiedShow Answer

One "design principle" that makes informal,community-based solutions to public goods and common resource problems more effective is:

Correct AnswerverifiedShow Answer

Elinor Ostrom won the 2009 Nobel Prize in economics for her research showing:

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Which of the following goods is most likely to be overconsumed?

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Which of the following is most likely to be overconsumed?

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If the punishment is _________,or the likelihood of getting caught is _________,the cost associated with breaking a ban may not be high enough to change the trade-off that consumers face.

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Not having to pay for a good leads to:

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The tragedy of the commons arises from:

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An example of a good that is rival in consumption is:

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Wikipedia is an example of:

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Which of the following is likely to cause a market failure and be overconsumed?

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A common resource is:

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When the government privatizes a common resource,it:

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Fish in the ocean would be considered:

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If the punishment is _,or the likelihood of getting caught is _,the cost associated with breaking a ban may not be high enough to change the trade-off that consumers face.

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