Question 1

Private companies will invest in medical research if

Accepted Answer

A)   they will produce general knowledge.
B)   they will produce a specific product for which they may receive a patent.
C)   there is no government intervention in the market for medical products.
D)   others will benefit from their discoveries.E) A) and B)
F) None of the above

Question 2

Figure 11-1
 
-Refer to Figure 11-1.A mathematical theorem is an example of general knowledge.In which of the boxes - A,B,C,or D - does a mathematical theorem belong?

Accepted Answer

A mathematical theor...

Question 3

A textbook is a

Accepted Answer

A)   private good and the knowledge that one gains from reading the book is a common resource.
B)   private good and the knowledge that one gains from reading the book is a public good.
C)   common resource and the knowledge that one gains from reading the book is a public good.
D)   common resource and the knowledge that one gains from reading the book is a private good.E) B) and D)
F) A) and B)

Question 4

When a good does not have a __________ attached to it,private markets fail to ensure that the good is produced and consumed in the proper amounts.

Accepted Answer

The answer of When a good does not have a...

Question 5

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

Accepted Answer

National defense is ...

Question 6

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 7

Excludability is the property of a good whereby

Accepted Answer

A)   one person's use diminishes other peoples' use.
B)   a person can be prevented from using it.
C)   a good is private,not public.
D)   a good is public,not private.E) B) and C)
F) A) and B)

Question 8

When a good is excludable,

Accepted Answer

A)   one person's use of the good diminishes another person's ability to use it.
B)   people can be prevented from using the good.
C)   no more than one person can use the good at the same time.
D)   everyone will be excluded from using the good.E) B) and C)
F) C) and D)

Question 9

Which of the following is an example of general knowledge,as opposed to specific knowledge that can be patented?

Accepted Answer

A)   the invention of a longer-lasting battery
B)   a mathematical theorem
C)   a method for constucting a high-performance microchip
D)   the chemical formula for an adhesiveE) A) and B)
F) B) and C)

Question 10

Cost-benefit analysts often encounter the problem that those who would benefit from government provision of a public good tend to

Accepted Answer

A)   overstate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to overstate the costs they would incur from the public good.
B)   overstate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to understate the costs they would incur from the public good.
C)   understate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to overstate the costs they would incur from the public good.
D)   understate the benefit they would receive from the public good and those who would be harmed by government provision of a public good tend to understate the costs they would incur from the public good.E) All of the above
F) B) and C)

Question 11

The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of diet soft drinks is 0.0005.The cost of imposing a regulation that would ban the chemical is $18 million.If the value of a human life is equal to $10 million,how many people must the policy affect in order for the benefits to exceed the costs?

Accepted Answer

A)   301
B)   601
C)   1801
D)   3601E) A) and B)
F) B) and C)

Question 12

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

Question 13

When the absence of property rights causes a market failure,the government can potentially solve the problem

Accepted Answer

A)   by clearly defining property rights.
B)   through regulation.
C)   by supplying the good itself.
D)   All of the above are correct.E) A) and B)
F) C) and D)

Question 14

The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

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

Question 16

Aristotle writes,"What is common to many is taken least care of,for all men have greater regard for what is their own than for what they possess in common with others." In this statement,Aristotle is referring to the free-rider problem that occurs when a person receives the benefit of a good without paying for it.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following goods is rival in consumption and excludable?

Accepted Answer

A)   a tornado siren
B)   an uncongested toll road
C)   a home
D)   the environmentE) A) and B)
F) All of the above

Question 18

One economically efficient way to eliminate the Tragedy of the Commons is to

Accepted Answer

A)   tax the owners of the resource.
B)   prevent anyone from using the resource.
C)   reduce the marginal social benefit of the resource.
D)   establish private ownership of the resource.E) A) and B)
F) C) and D)

Question 19

Figure 11-1
 
-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 20

A cost-benefit analysis of a highway is difficult to conduct because analysts

Accepted Answer

A)   cannot estimate the explicit cost of a project that has not been completed.
B)   are unlikely to have access to costs on similar projects.
C)   are not able to consider the opportunity cost of resources.
D)   will have difficulty estimating the value of the highway.E) B) and C)
F) A) and B)

Exam 11: Public Goods and Common Resources

When the absence of property rights causes a market failure,the government can potentially solve the problem

Correct Answer
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Figure 11-1 -Refer to Figure 11-1.A mathematical theorem is an example of general knowledge.In which of the boxes - A,B,C,or D - does a mathematical theorem belong?

Correct Answer
verified
A mathematical theor...
View Answer

Correct Answer
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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

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

Correct Answer
verified

Figure 11-1 -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
verified
We associate the Tra...
View Answer

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

Correct Answer
verified
National defense is ...
View Answer

Correct Answer
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The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity.

Correct Answer
verified

Excludability is the property of a good whereby

Correct Answer
verified

Which of the following is an example of general knowledge,as opposed to specific knowledge that can be patented?

Correct Answer
verified

When a good does not have a __________ attached to it,private markets fail to ensure that the good is produced and consumed in the proper amounts.

Correct Answer
verified

A textbook is a

Correct Answer
verified

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

Correct Answer
verified

Private companies will invest in medical research if

Correct Answer
verified

Cost-benefit analysts often encounter the problem that those who would benefit from government provision of a public good tend to

Correct Answer
verified

When a good is excludable,

Correct Answer
verified

One economically efficient way to eliminate the Tragedy of the Commons is to

Correct Answer
verified

A cost-benefit analysis of a highway is difficult to conduct because analysts

Correct Answer
verified

Which of the following goods is rival in consumption and excludable?

Correct Answer
verified

Exam 11: Public Goods and Common Resources

When the absence of property rights causes a market failure,the government can potentially solve the problem

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.A mathematical theorem is an example of general knowledge.In which of the boxes - A,B,C,or D - does a mathematical theorem belong?

Correct AnswerverifiedA mathematical theor...View AnswerShow Answer

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

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

Correct AnswerverifiedShow Answer

Figure 11-1 -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

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

Correct AnswerverifiedNational defense is ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity.

Correct AnswerverifiedShow Answer

Excludability is the property of a good whereby

Correct AnswerverifiedShow Answer

Which of the following is an example of general knowledge,as opposed to specific knowledge that can be patented?

Correct AnswerverifiedShow Answer

When a good does not have a __________ attached to it,private markets fail to ensure that the good is produced and consumed in the proper amounts.

Correct AnswerverifiedShow Answer

A textbook is a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Private companies will invest in medical research if

Correct AnswerverifiedShow Answer

Cost-benefit analysts often encounter the problem that those who would benefit from government provision of a public good tend to

Correct AnswerverifiedShow Answer

When a good is excludable,

Correct AnswerverifiedShow Answer

One economically efficient way to eliminate the Tragedy of the Commons is to

Correct AnswerverifiedShow Answer

A cost-benefit analysis of a highway is difficult to conduct because analysts

Correct AnswerverifiedShow Answer

Which of the following goods is rival in consumption and excludable?

Correct AnswerverifiedShow Answer

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A mathematical theor...
View Answer

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We associate the Tra...
View Answer

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National defense is ...
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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Correct Answer
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Correct Answer
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