Question 1

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Accepted Answer

A) True 
 B)False

Question 2

The U.S. government protects fish, a common resource, by

Accepted Answer

A)   subsidizing the fishing industry.
B)   heavily taxing competing industries.
C)   selling fishing licenses and regulating fish lengths.
D)   None of the above is correct.E) None of the above
F) B) and D)

Question 3

At the local park there is a playground for children to use. While anyone is allowed to use the playground, it is often very busy, reducing the enjoyment of many of the children who use it. The playground is a

Accepted Answer

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

Question 4

What can the government do to solve the problem of excessive use of common resources?

Accepted Answer

Government can impose regulati...

Question 5

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

Accepted Answer

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

Question 6

It is common knowledge that many U.S. national parks have become overused. One possible solution to this problem is to

Accepted Answer

A)   increase entrance fees.
B)   decrease camping permit fees.
C)   require all visitors to register upon entering the park.
D)   sell the land that the parks currently occupy.E) B) and C)
F) C) and D)

Question 7

Which of the following statements about private goods and public goods is correct?

Accepted Answer

A)   Private goods and public goods are both excludable.
B)   Private goods and public goods are both rival in consumption.
C)   Private goods are not excludable and public goods are excludable.
D)   Private goods are rival in consumption and public goods are not excludable.E) A) and B)
F) B) and D)

Question 8

Is basic research excludable? Is it rival in consumption? How do we classify basic research in terms of the four types of goods?

Accepted Answer

Basic research is ne...

Question 9

When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Accepted Answer

A) True 
 B)False

Question 10

The profit motive that stems from private ownership means that elephant populations are best protected as common resources.

Accepted Answer

A) True 
 B)False

Question 11

Consider a public road that anyone is allowed to drive on. If the road is often congested, the road would be considered a

Accepted Answer

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

Question 12

A stairwell in a certain office building is always congested at 12:00 p.m. and 1:00 p.m. The congestion is so bad that people have been complaining to the building's owner. Which of the following methods would be the most efficient way of reducing congestion?

Accepted Answer

A)   Assign each person in the building a time when they are allowed to use the stairwell.
B)   Encourage people to voluntarily keep off the stairwell during peak times.
C)   Charge everyone who uses the stairwell when it is congested the same fee. People who value the use of the stairs the most will be the ones who use the stairwell at peak times.
D)   Hold a lottery to determine who wins the right to use the stairwell at peak times.E) C) and D)
F) A) and B)

Question 13

An internet radio broadcast is

Accepted Answer

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 D)

Question 14

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) C) and D)

Question 15

In almost all cases of common resources, the same problem arises as in the Tragedy of the .

Accepted Answer

The answer of In almost all cases of common resources,...

Question 16

When an infinite value is placed on human life, policymakers who rely on cost-benefit analysis

Accepted Answer

A)   are forced to pursue any project in which a single human life is saved.
B)   are likely to make decisions that optimally allocate society's scarce resources.
C)   would not pursue any public project that would not save human life.
D)   would be forced to rely on private markets to provide public goods.E) B) and D)
F) B) and C)

Question 17

In what way do common resources give rise to negative externalities?

Accepted Answer

When one person uses a common ...

Question 18

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. If the marginal cost of police protection is constant at $36 per person-hour, what is the efficient level of police protection to provide?

Accepted Answer

A)   9 units
B)   39 units
C)   66 units
D)   99 unitsE) B) and D)
F) B) and C)

Question 19

Which city currently charges drivers a "congestion toll" to drive into the heart of the city's financial, legal, and entertainment district?

Accepted Answer

A)   Washington, D.C.
B)   Sydney
C)   Tokyo
D)   LondonE) None of the above
F) All of the above

Question 20

Most lighthouses are operated by the government because

Accepted Answer

A)   of the free-rider problem.
B)   lighthouses are no longer valued by society.
C)   most lighthouses are only tourist attractions in state and national parks.
D)   shipping companies would not be able to afford maintenance fees for lighthouses.E) None of the above
F) All of the above

Exam 11: Public Goods and Common Resources

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

Correct Answer
verified

Which city currently charges drivers a "congestion toll" to drive into the heart of the city's financial, legal, and entertainment district?

Correct Answer
verified

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

In what way do common resources give rise to negative externalities?

Correct Answer
verified
When one person uses a common ...
View Answer

What can the government do to solve the problem of excessive use of common resources?

Correct Answer
verified
Government can impose regulati...
View Answer

Consider a public road that anyone is allowed to drive on. If the road is often congested, the road would be considered a

Correct Answer
verified

The U.S. government protects fish, a common resource, by

Correct Answer
verified

The profit motive that stems from private ownership means that elephant populations are best protected as common resources.

Correct Answer
verified

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Correct Answer
verified

When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Correct Answer
verified

A stairwell in a certain office building is always congested at 12:00 p.m. and 1:00 p.m. The congestion is so bad that people have been complaining to the building's owner. Which of the following methods would be the most efficient way of reducing congestion?

Correct Answer
verified

Correct Answer
verified

Which of the following statements about private goods and public goods is correct?

Correct Answer
verified

Is basic research excludable? Is it rival in consumption? How do we classify basic research in terms of the four types of goods?

Correct Answer
verified
Basic research is ne...
View Answer

Most lighthouses are operated by the government because

Correct Answer
verified

When an infinite value is placed on human life, policymakers who rely on cost-benefit analysis

Correct Answer
verified

In almost all cases of common resources, the same problem arises as in the Tragedy of the .

Correct Answer
verified

It is common knowledge that many U.S. national parks have become overused. One possible solution to this problem is to

Correct Answer
verified

An internet radio broadcast is

Correct Answer
verified

At the local park there is a playground for children to use. While anyone is allowed to use the playground, it is often very busy, reducing the enjoyment of many of the children who use it. The playground is a

Correct Answer
verified

Exam 11: Public Goods and Common Resources

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

Correct AnswerverifiedShow Answer

Which city currently charges drivers a "congestion toll" to drive into the heart of the city's financial, legal, and entertainment district?

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

In what way do common resources give rise to negative externalities?

Correct AnswerverifiedWhen one person uses a common ...View AnswerShow Answer

What can the government do to solve the problem of excessive use of common resources?

Correct AnswerverifiedGovernment can impose regulati...View AnswerShow Answer

Consider a public road that anyone is allowed to drive on. If the road is often congested, the road would be considered a

Correct AnswerverifiedShow Answer

The U.S. government protects fish, a common resource, by

Correct AnswerverifiedShow Answer

The profit motive that stems from private ownership means that elephant populations are best protected as common resources.

Correct AnswerverifiedShow Answer

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Correct AnswerverifiedShow Answer

When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Correct AnswerverifiedShow Answer

A stairwell in a certain office building is always congested at 12:00 p.m. and 1:00 p.m. The congestion is so bad that people have been complaining to the building's owner. Which of the following methods would be the most efficient way of reducing congestion?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements about private goods and public goods is correct?

Correct AnswerverifiedShow Answer

Is basic research excludable? Is it rival in consumption? How do we classify basic research in terms of the four types of goods?

Correct AnswerverifiedBasic research is ne...View AnswerShow Answer

Most lighthouses are operated by the government because

Correct AnswerverifiedShow Answer

When an infinite value is placed on human life, policymakers who rely on cost-benefit analysis

Correct AnswerverifiedShow Answer

In almost all cases of common resources, the same problem arises as in the Tragedy of the .

Correct AnswerverifiedShow Answer

It is common knowledge that many U.S. national parks have become overused. One possible solution to this problem is to

Correct AnswerverifiedShow Answer

An internet radio broadcast is

Correct AnswerverifiedShow Answer

At the local park there is a playground for children to use. While anyone is allowed to use the playground, it is often very busy, reducing the enjoyment of many of the children who use it. The playground is a

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
When one person uses a common ...
View Answer

Correct Answer
verified
Government can impose regulati...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Basic research is ne...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified