Question 1

A good that is rival in consumption and not excludable is called a

Accepted Answer

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

Question 2

Because it is

Accepted Answer

A)   neither excludable nor rival in consumption, a tornado siren is a common resource.
B)   neither excludable nor rival in consumption, a tornado siren is a public good.
C)   excludable but not rival in consumption, a tornado siren is produced by a natural monopoly.
D)   rival in consumption but not excludable, a tornado siren is a common resource.E) All of the above
F) B) and C)

Question 3

All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

Accepted Answer

A) True 
 B)False

Question 4

Pollution is a

Accepted Answer

A)   problem that is entirely unrelated to the parable called the Tragedy of the Commons.
B)   problem that cannot be remedied with regulations or corrective taxes.
C)   negative externality that can be viewed as a public-goods problem.
D)   negative externality that can be viewed as a common-resource problem.E) All of the above
F) B) and C)

Question 5

Which of the following is an example of the free-rider problem?

Accepted Answer

A)   Both Zoe and Zach receive low-cost dental care at the local dental school, so neither of them pays the full cost of the care.
B)   Alfred receives a free lunch from the local "Meals on Wheels" program because of his low monthly income. Yet his next door neighbor, Alice, is not eligible for the free lunch.
C)   Bruce owns Buster, a large dog who barks whenever anyone walks near his house. Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walks near her house, too. Thus, Betty receives free protection from burglars because of Buster's barking.
D)   Sam purchases a burger at a fast food restaurant and gets a second burger free because the restaurant is having a buy one, get one free sale.E) A) and D)
F) All of the above

Question 6

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 7

Common resources and public goods have in common that they are not excludable and they are not rival in consumption.

Accepted Answer

A) True 
 B)False

Question 8

Figure 11-1
Rival in Consumption?
  
-Refer to Figure 11-1. With which of the boxes - A, B, C, or D - do we associate the Tragedy of the Commons?

Accepted Answer

We associate the Tra...

Question 9

One person's use of common resources does not reduce the enjoyment other people receive from the resource.

Accepted Answer

A) True 
 B)False

Question 10

The phenomenon of free riding is most closely associated with which type of good?

Accepted Answer

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

Question 11

Table 11-3
This table describes the police protection demands for three equal sized groups of people in Safetyville. The second, third, and fourth columns show the number of person-hours of police protection per day that a group will demand for a given price (the first column) .
 
-Refer to Table 11-3. What is the value of the 99th unit of police protection in Safetyville?

Accepted Answer

A)   $0
B)   $6
C)   $12
D)   $18E) B) and D)
F) A) and B)

Question 12

Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely

Accepted Answer

A)   be provided by a private firm rather than the government.
B)   have a free-rider problem.
C)   not exist.
D)   be limited to a small number of units of production.E) A) and B)
F) A) and D)

Question 13

Which of the following goods is excludable but not rival in consumption?

Accepted Answer

A)   a congested toll road
B)   fire protection in a small town
C)   a tornado siren
D)   whales in the oceanE) B) and D)
F) A) and C)

Question 14

If everyone benefits from helping the poor,

Accepted Answer

A)   government intervention cannot improve social well-being.
B)   eliminating taxes aimed at redistributing income will make rich people better off.
C)   taxing the wealthy to raise living standards of the poor can potentially make everyone better off.
D)   private markets can adequately provide charity programs to help the poor, despite free-rider problems.E) None of the above
F) A) and B)

Question 15

Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?

Accepted Answer

A)   tablet computer, gym membership at a gym that always has plenty of open equipment and classes
B)   tablet computer, national defense
C)   congested nontoll road, national defense
D)   online music subscription, streetlightE) C) and D)
F) All of the above

Question 16

Scenario 11-2
Consider the following goods:
-fire-protection services provided by a fire department
-a beautiful mural on the outside wall of a fire station
-a firefighter's helmet
-Refer to Scenario 11-2. Which of these goods is the best example of a public good? Briefly explain.

Accepted Answer

The beautiful mural is the bes...

Question 17

Property rights are well established for

Accepted Answer

A)   private goods.
B)   public goods.
C)   common resources.
D)   both (b)  and (c) .E) A) and C)
F) None of the above

Question 18

Scenario 11-3
Consider the following goods:
-a fish fillet served at a restaurant
-fish in the ocean
-exotic fish in a huge aquarium in a privately-owned building
-Refer to Scenario 11-3. Which of these goods is the best example of a club good? Briefly explain.

Accepted Answer

The exotic fish in the huge aq...

Question 19

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) A) and D)
F) A) and C)

Question 20

Which of the following would be considered a private good?

Accepted Answer

A)   a ferry boat ride to an island with open seating
B)   a public beach
C)   fish in the ocean
D)   a swimming suitE) B) and C)
F) All of the above

Exam 11: Public Goods and Common Resources

Scenario 11-2 Consider the following goods: -fire-protection services provided by a fire department -a beautiful mural on the outside wall of a fire station -a firefighter's helmet -Refer to Scenario 11-2. Which of these goods is the best example of a public good? Briefly explain.

Correct Answer
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The beautiful mural is the bes...
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Which of the following goods is excludable but not rival in consumption?

Correct Answer
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Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely

Correct Answer
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Property rights are well established for

Correct Answer
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One person's use of common resources does not reduce the enjoyment other people receive from the resource.

Correct Answer
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Pollution is a

Correct Answer
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Common resources and public goods have in common that they are not excludable and they are not rival in consumption.

Correct Answer
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A good that is rival in consumption and not excludable is called a

Correct Answer
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Scenario 11-3 Consider the following goods: -a fish fillet served at a restaurant -fish in the ocean -exotic fish in a huge aquarium in a privately-owned building -Refer to Scenario 11-3. Which of these goods is the best example of a club good? Briefly explain.

Correct Answer
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The exotic fish in the huge aq...
View Answer

If everyone benefits from helping the poor,

Correct Answer
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Which of the following is an example of the free-rider problem?

Correct Answer
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Figure 11-1 Rival in Consumption? -Refer to Figure 11-1. With which of the boxes - A, B, C, or D - do we associate the Tragedy of the Commons?

Correct Answer
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We associate the Tra...
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Because it is

Correct Answer
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The U.S. patent system

Correct Answer
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Which of the following would be considered a private good?

Correct Answer
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All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

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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Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?

Correct Answer
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The phenomenon of free riding is most closely associated with which type of good?

Correct Answer
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Exam 11: Public Goods and Common Resources

Scenario 11-2 Consider the following goods: -fire-protection services provided by a fire department -a beautiful mural on the outside wall of a fire station -a firefighter's helmet -Refer to Scenario 11-2. Which of these goods is the best example of a public good? Briefly explain.

Correct AnswerverifiedThe beautiful mural is the bes...View AnswerShow Answer

Which of the following goods is excludable but not rival in consumption?

Correct AnswerverifiedShow Answer

Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely

Correct AnswerverifiedShow Answer

Property rights are well established for

Correct AnswerverifiedShow Answer

One person's use of common resources does not reduce the enjoyment other people receive from the resource.

Correct AnswerverifiedShow Answer

Pollution is a

Correct AnswerverifiedShow Answer

Common resources and public goods have in common that they are not excludable and they are not rival in consumption.

Correct AnswerverifiedShow Answer

A good that is rival in consumption and not excludable is called a

Correct AnswerverifiedShow Answer

Scenario 11-3 Consider the following goods: -a fish fillet served at a restaurant -fish in the ocean -exotic fish in a huge aquarium in a privately-owned building -Refer to Scenario 11-3. Which of these goods is the best example of a club good? Briefly explain.

Correct AnswerverifiedThe exotic fish in the huge aq...View AnswerShow Answer

If everyone benefits from helping the poor,

Correct AnswerverifiedShow Answer

Which of the following is an example of the free-rider problem?

Correct AnswerverifiedShow Answer

Figure 11-1 Rival in Consumption? -Refer to Figure 11-1. With which of the boxes - A, B, C, or D - do we associate the Tragedy of the Commons?

Correct AnswerverifiedWe associate the Tra...View AnswerShow Answer

Because it is

Correct AnswerverifiedShow Answer

The U.S. patent system

Correct AnswerverifiedShow Answer

Which of the following would be considered a private good?

Correct AnswerverifiedShow Answer

All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

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

Correct AnswerverifiedShow Answer

Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?

Correct AnswerverifiedShow Answer

The phenomenon of free riding is most closely associated with which type of good?

Correct AnswerverifiedShow Answer

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The beautiful mural is the bes...
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The exotic fish in the huge aq...
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We associate the Tra...
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