Question 1

Figure 11-1

-Refer to Figure 11-1. Which of the following statements is correct?

Accepted Answer

A)   A congested toll road is an example of the type of good represented by Box B.
B)   An uncongested toll road is an example of the type of good represented by Box D.
C)   A congested nontoll road is an example of the type of good represented by Box C.
D)   An uncongested nontoll road is an example of the type of good represented by Box A.E) A) and D)
F) A) and C)

Question 2

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) All of the above
F) None of the above

Question 3

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.E) None of the above
F) B) and D)

Question 4

85 Refer to Table 11-4. Suppose the cost to plant each tree is $220 and the 4 homeowners have agreed to split all tree-planting costs equally. Which homeowners)  would be in favor of planting at least 3 trees?
a. only Benitez
b. only Benitez and Chen
c. only Benitez, Chen, and Davis
d. Adams, Benitez, Chen, and Davis
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Challenging
-Refer to Table 11-4. Suppose the cost to plant each tree is $340 and the 4 homeowners have agreed to split all tree-planting costs equally. Which homeowners)  would be in favor of planting at least 1 tree?

Accepted Answer

A)   only Benitez
B)   only Benitez and Chen
C)   only Benitez, Chen, and Davis
D)   Adams, Benitez, Chen, and DavisE) None of the above
F) All of the above

Question 5

Both private goods and club goods are

Accepted Answer

A)   rival in consumption.
B)   nonrival in consumption.
C)   excludable.
D)   nonexcludable.E) None of the above
F) B) and C)

Question 6

The difference between specific knowledge and general knowledge is that

Accepted Answer

A)   the creation of general knowledge is usually more profitable for the creator.
B)   specific knowledge is excludable, while general knowledge is not excludable.
C)   general knowledge is excludable, while specific knowledge is not excludable.
D)   general knowledge is rival in consumption, while specific knowledge is not rival in consumption.E) A) and B)
F) None of the above

Question 7

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

Accepted Answer

A)   pizza, cable TV
B)   pair of pants, clean air
C)   clean air, mathematical theorem
D)   basic research, fireworks displayE) B) and C)
F) A) and D)

Question 8

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 9

Why is cable TV reception regarded as a club good?

Accepted Answer

Cable TV reception is excludable, becaus...

Question 10

The value and cost of goods are easiest to determine when the goods are

Accepted Answer

A)   private goods.
B)   public goods.
C)   common resources.
D)   club goods.E) A) and B)
F) All of the above

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) None of the above
F) B) and C)

Question 12

Bob owns 5 acres of land. Bob sells the land to a real estate developer who builds a subdivision with 10 houses. The land is an example of a good that is

Accepted Answer

A)   both rival in consumption and excludable.
B)   neither rival in consumption nor excludable.
C)   excludable, but not rival in consumption.
D)   rival in consumption, but not excludable.E) A) and B)
F) None of the above

Question 13

In what sense is it meaningful to say that fighting poverty is a public good?

Accepted Answer

The argument that fighting poverty is a ...

Question 14

Goods that are rival in consumption and excludable would be considered

Accepted Answer

A)   club goods.
B)   common resources.
C)   public goods.
D)   private goods.E) All of the above
F) A) and B)

Question 15

Miguel, Maria, and Marcos all would like a place to sit while waiting at their children's bus stop. The neighborhood association is considering installing several park benches at the bus stop. Miguel values the benches at $20, Maria at $30, and Marcos at $40. The park benches and labor for installation cost $100. If Miguel, Maria, and Marcos are the only residents who value the benches, what should the neighborhood association do?

Accepted Answer

A)   Install the park benches because people like places to sit.
B)   Install the park benches because the benefits outweigh the costs.
C)   Do not install the park benches because the costs outweigh the benefits.
D)   Do not install the park benches to prevent the Tragedy of the Commons problem of overuse.E) A) and C)
F) All of the above

Question 16

Private goods and club goods have in common that they are excludable, but are different in that private goods are rival while club goods are not rival in consumption.

Accepted Answer

A) True 
 B)False

Question 17

Markets do not ensure that the air we breathe is clean because

Accepted Answer

A)   clean air has no value.
B)   the government prevents markets from doing so.
C)   property rights are not well established for clean air.
D)   clean air is impossible to produce .E) All of the above
F) C) and D)

Question 18

Government policy can potentially raise economic well-being

Accepted Answer

A)   in all markets for goods and services.
B)   in economic models, but not in reality.
C)   when a good does not have a price attached to it.
D)   never.E) A) and C)
F) None of the above

Question 19

Table 11-4
There are four homes along Belmont Circle, which surrounds a small plot of land. The land currently has no trees, and the 4 homeowners -- Adams, Benitez, Chen, and Davis -- are considering the idea of contributing to a pool of money that will be used to plant up to 4 trees. The table represents their willingness to pay, that is, the maximum amount that each homeowner is willing to contribute toward each tree.
 
-Refer to Table 11-4. Suppose the cost to plant each tree is $380 and the 4 homeowners have agreed to split all tree-planting costs equally. Which homeowners)  would be opposed to planting any trees?

Accepted Answer

A)   only Davis
B)   only Adams and Davis
C)   only Adams, Benitez, and Davis
D)   Adams, Benitez, Chen, and DavisE) A) and B)
F) None of the above

Question 20

Figure 11-1

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

Accepted Answer

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

Exam 11: Public Goods and Common Resources

Both private goods and club goods are

Correct Answer
verified

Goods that are rival in consumption and excludable would be considered

Correct Answer
verified

In what sense is it meaningful to say that fighting poverty is a public good?

Correct Answer
verified
The argument that fighting poverty is a ...
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Markets do not ensure that the air we breathe is clean because

Correct Answer
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Correct Answer
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Figure 11-1 -Refer to Figure 11-1. The box labeled D represents

Correct Answer
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Government policy can potentially raise economic well-being

Correct Answer
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A common theme among examples of market failure is

Correct Answer
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Correct Answer
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The value and cost of goods are easiest to determine when the goods are

Correct Answer
verified

Correct Answer
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Bob owns 5 acres of land. Bob sells the land to a real estate developer who builds a subdivision with 10 houses. The land is an example of a good that is

Correct Answer
verified

A cheeseburger is a

Correct Answer
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Why is cable TV reception regarded as a club good?

Correct Answer
verified
Cable TV reception is excludable, becaus...
View Answer

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

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1. Which of the following statements is correct?

Correct Answer
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Private goods and club goods have in common that they are excludable, but are different in that private goods are rival while club goods are not rival in consumption.

Correct Answer
verified

The difference between specific knowledge and general knowledge is that

Correct Answer
verified

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 excludable and not rival in consumption?

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Both private goods and club goods are

Correct AnswerverifiedShow Answer

Goods that are rival in consumption and excludable would be considered

Correct AnswerverifiedShow Answer

In what sense is it meaningful to say that fighting poverty is a public good?

Correct AnswerverifiedThe argument that fighting poverty is a ...View AnswerShow Answer

Markets do not ensure that the air we breathe is clean because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Government policy can potentially raise economic well-being

Correct AnswerverifiedShow Answer

A common theme among examples of market failure is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The value and cost of goods are easiest to determine when the goods are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Bob owns 5 acres of land. Bob sells the land to a real estate developer who builds a subdivision with 10 houses. The land is an example of a good that is

Correct AnswerverifiedShow Answer

A cheeseburger is a

Correct AnswerverifiedShow Answer

Why is cable TV reception regarded as a club good?

Correct AnswerverifiedCable TV reception is excludable, becaus...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1. Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Private goods and club goods have in common that they are excludable, but are different in that private goods are rival while club goods are not rival in consumption.

Correct AnswerverifiedShow Answer

The difference between specific knowledge and general knowledge is that

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 excludable and not rival in consumption?

Correct AnswerverifiedShow Answer

Correct Answer
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The argument that fighting poverty is a ...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Cable TV reception is excludable, becaus...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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