Question 1

What goods would be considered both excludable and rival in consumption

Accepted Answer

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

Question 2

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

Accepted Answer

A) True 
 B)False

Question 3

What is the difference between technological knowledge and general knowledge

Accepted Answer

A)  General knowledge creation is usually more profitable for the creator.
B)  Technological knowledge is excludable and general knowledge is not.
C)  General knowledge is excludable and technological knowledge is not.
D)  General knowledge is rival in consumption and technological knowledge is not.E) A) and C)
F) B) and C)

Question 4

Which statement best describes the cause of "overrun and over-trampled" national parks

Accepted Answer

A)  Park administrators do not use the best science available to manage park resources.
B)  National parks are treated as free goods by their visitors.
C)  National parks annually adjust park visitation fees to the rate of inflation.
D)  The price of entrance to national parks has kept pace with other forms of recreation.E) A) and C)
F) All of the above

Question 5

Why does a tax on gasoline often reduce road congestion

Accepted Answer

A)  Gasoline and driving are complementary goods.
B)  Gasoline and driving are substitute goods.
C)  Gasoline and driving are normal goods.
D)  Gasoline is considered an inferior good.E) None of the above
F) A) and D)

Question 6

What do goods that are excludable include

Accepted Answer

A)  both natural monopolies and public goods
B)  both public goods and common resources
C)  both common resources and private goods
D)  both private goods and natural monopoliesE) C) and D)
F) B) and C)

Question 7

What do goods that are NOT rival in consumption include

Accepted Answer

A)  both natural monopolies and public goods
B)  both public goods and common resources
C)  both common resources and private goods
D)  both private goods and natural monopoliesE) None of the above
F) All of the above

Question 8

Ten friends who love to ski decide to pool their financial resources and equally share the cost of a one-week time-share condominium in Banff,Alberta.If lift lines at the ski resort become more congested when these ten additional people start to ski,then which of the following is most likely the case

Accepted Answer

A)  Use of the ski resort by all of these 10 new skiers will yield a positive externality.
B)  The ski resort cannot do anything to reduce the congestion externality
C)  An increase in lift ticket prices could be viewed as a Pigovian tax on the externality of congestion.
D)  Everyone would have been better off to stay at home.E) A) and D)
F) All of the above

Question 9

If Toby and Pete are the only two fishermen in town,and neither is bothered by the other's fishing,the lake they fish in is not a common resource.

Accepted Answer

A) True 
 B)False

Question 10

For most goods in an economy,what is the signal that guides the decisions of buyers and sellers

Accepted Answer

A)  greed
B)  the self-interest of both buyers and sellers
C)  prices
D)  profitsE) None of the above
F) B) and D)

Question 11

Private markets usually provide lighthouses because ship captains have the incentive to navigate using the lighthouse and therefore will pay for the service.

Accepted Answer

A) True 
 B)False

Question 12

What is an example of a private good

Accepted Answer

A)  Internet service
B)  regional weather alerts
C)  fish in the ocean
D)  a milkshakeE) B) and C)
F) A) and D)

Question 13

When one person uses a common resource and he diminishes other people's enjoyment of it,what is this an example of

Accepted Answer

A)  a market force
B)  an externality
C)  the invisible hand
D)  nonexcludabilityE) A) and B)
F) None of the above

Exam 11: Public Goods and Common Resources

When one person uses a common resource and he diminishes other people's enjoyment of it,what is this an example of

Correct Answer
verified

If Toby and Pete are the only two fishermen in town,and neither is bothered by the other's fishing,the lake they fish in is not a common resource.

Correct Answer
verified

What is an example of a private good

Correct Answer
verified

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

Correct Answer
verified

What do goods that are excludable include

Correct Answer
verified

Which statement best describes the cause of "overrun and over-trampled" national parks

Correct Answer
verified

For most goods in an economy,what is the signal that guides the decisions of buyers and sellers

Correct Answer
verified

What is the difference between technological knowledge and general knowledge

Correct Answer
verified

What do goods that are NOT rival in consumption include

Correct Answer
verified

What goods would be considered both excludable and rival in consumption

Correct Answer
verified

Private markets usually provide lighthouses because ship captains have the incentive to navigate using the lighthouse and therefore will pay for the service.

Correct Answer
verified

Correct Answer
verified

Why does a tax on gasoline often reduce road congestion

Correct Answer
verified

Exam 11: Public Goods and Common Resources

When one person uses a common resource and he diminishes other people's enjoyment of it,what is this an example of

Correct AnswerverifiedShow Answer

If Toby and Pete are the only two fishermen in town,and neither is bothered by the other's fishing,the lake they fish in is not a common resource.

Correct AnswerverifiedShow Answer

What is an example of a private good

Correct AnswerverifiedShow Answer

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

Correct AnswerverifiedShow Answer

What do goods that are excludable include

Correct AnswerverifiedShow Answer

Which statement best describes the cause of "overrun and over-trampled" national parks

Correct AnswerverifiedShow Answer

For most goods in an economy,what is the signal that guides the decisions of buyers and sellers

Correct AnswerverifiedShow Answer

What is the difference between technological knowledge and general knowledge

Correct AnswerverifiedShow Answer

What do goods that are NOT rival in consumption include

Correct AnswerverifiedShow Answer

What goods would be considered both excludable and rival in consumption

Correct AnswerverifiedShow Answer

Private markets usually provide lighthouses because ship captains have the incentive to navigate using the lighthouse and therefore will pay for the service.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why does a tax on gasoline often reduce road congestion

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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