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What particular characteristic do public goods and common resources have in common?

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Public goods and common resour...

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Figure 11-1 -Refer to Figure 11-1. The box labeled C represents what type of good? Figure 11-1 -Refer to Figure 11-1. The box labeled C represents what type of good?

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Box C repr...

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Governments can grant private property rights over resources that were previously viewed as public, such as fish or elephants. Why would governments want to do so?


A) to prevent overuse
B) to decrease taxes
C) to fight poverty
D) to increase consumption

E) A) and B)
F) B) and D)

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Which of the following statements is correct?


A) The establishment of property rights sometimes gives rise to market failure.
B) The absence of property rights sometimes gives rise to market failure.
C) In the context of public goods, the Coase theorem implies that total surplus in some markets can be improved by the elimination of property rights.
D) Government regulation of private behavior, in response to market failure, can never improve social well-being.

E) A) and B)
F) A) and C)

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You and your friends eat potato chips in your bedroom. For you and your friends, the potato chips are rival in consumption.

A) True
B) False

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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) . 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 39th unit of police protection in Safetyville? A) $24 B) $42 C) $54 D) $72 -Refer to Table 11-3. What is the value of the 39th unit of police protection in Safetyville?


A) $24
B) $42
C) $54
D) $72

E) A) and B)
F) A) and C)

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Table 11-1 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. 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. Table 11-1 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. 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 $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield? A) 1 acres B) 2 acres C) 3 acres D) 4 acres -Refer to Table 11-1. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?


A) 1 acres
B) 2 acres
C) 3 acres
D) 4 acres

E) All of the above
F) C) and D)

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An internet radio broadcast is


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.

E) All of the above
F) B) and C)

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A free-rider problem exists for any good that is not


A) rival in consumption.
B) a private good.
C) free.
D) excludable.

E) A) and B)
F) C) and D)

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Advocates of antipoverty programs believe that fighting poverty


A) can make everyone better off.
B) is most successfully accomplished by charities.
C) is most efficiently accomplished by the market.
D) reduces the well-being of tax payers.

E) All of the above
F) None of the above

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Even economists who advocate small government agree that


A) national defense is a public good and that the government should provide it.
B) national defense is a common resource and that the government should provide it.
C) national defense is a public good, but many of them believe that it should be provided by private firms rather than by the government.
D) national defense is a common resource, but many of them believe that it should be provided by private firms rather than by the government.

E) B) and D)
F) All of the above

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The pollution market failure is an example of the free rider problem.

A) True
B) False

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A television broadcast is an example of a good that is


A) private.
B) not rival in consumption.
C) social.
D) normal.

E) A) and B)
F) B) and C)

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


A) advertising.
B) quality.
C) reputation.
D) price.

E) All of the above
F) A) and B)

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The Tragedy of the Commons will be evident when a growing number of sheep grazing on the town commons leads to a destruction of the grazing resource. To correct for this problem, the town could


A) allow individual shepherds to choose their own flock sizes.
B) internalize the externality by subsidizing the production of sheep's wool.
C) auction off a limited number of sheep-grazing permits.
D) wait until the market corrects the problem.

E) B) and C)
F) C) and D)

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Someone who uses a good without paying for it is called a _______?

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Recall the four types of goods. Are national defense and a patented invention the same type of good? Briefly explain.

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No. National defense...

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Table 11-1 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. 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. Table 11-1 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. 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 $9 per acre. How large should the park be to maximize total surplus from the park in Springfield? A) 2 acres B) 3 acres C) 4 acres D) 5 acres -Refer to Table 11-1. Suppose the cost to build the park is $9 per acre. How large should the park be to maximize total surplus from the park in Springfield?


A) 2 acres
B) 3 acres
C) 4 acres
D) 5 acres

E) A) and B)
F) All of the above

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Table 11-2 Consider a small town with only three families, the Greene family, the Brown family, and the Black family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight. Table 11-2 Consider a small town with only three families, the Greene family, the Brown family, and the Black family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight. -Refer to Table 11-2. Suppose the cost to install each streetlight is $900 and the families have agreed to split the cost of installing the streetlights equally. To maximize their own surplus, how many streetlights would the Black's like the town to install? A) 0 streetlights B) 1 streetlight C) 2 streetlights D) 3 streetlights -Refer to Table 11-2. Suppose the cost to install each streetlight is $900 and the families have agreed to split the cost of installing the streetlights equally. To maximize their own surplus, how many streetlights would the Black's like the town to install?


A) 0 streetlights
B) 1 streetlight
C) 2 streetlights
D) 3 streetlights

E) A) and B)
F) A) and C)

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Which of the following is most likely to face extinction?


A) dogs living as pets in households
B) dairy cows living on farms and producing milk
C) bald eagles living in zoos
D) tigers living in the wild

E) C) and D)
F) B) and C)

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Showing 41 - 60 of 434

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