Question 1

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)  the government rations the quantity of a good that is available.
D)  the resource is congestible.E) None of the above
F) All of the above

Question 2

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

Question 3

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Accepted Answer

A)  $1 million.
B)  $5 million.
C)  $10 million.
D)  $20 million.E) A) and D)
F) A) and C)

Question 4

Figure 11-1 
-Refer to Figure 11-1. In which box - A, B, C, or D - does each of the following types of roads belong? (Consider each type of road separately.)• an uncongested toll road
• an uncongested nontoll road
• a congested toll road
• a congested nontoll road

Accepted Answer

An uncongested toll road belon...

Question 5

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

Accepted Answer

A) True 
 B)False

Question 6

Why has the value of ivory threatened the extinction of the elephant, whereas the value of beef has enhanced the survival of the cow?

Accepted Answer

A)  Cows are a common resource, whereas elephants are owned by governments.
B)  Elephants are larger than cows, requiring more economic resources.
C)  Elephants live in Africa, where economic resources are scarce.
D)  Elephants are a common resource, whereas cows are privately owned.E) A) and C)
F) None of the above

Question 7

Because public goods are

Accepted Answer

A)  excludable, people have an incentive to be free riders.
B)  excludable, people do not have an incentive to be free riders.
C)  not excludable, people have an incentive to be free riders.
D)  not excludable, people do not have an incentive to be free riders.E) A) and B)
F) A) and C)

Question 8

If the use of a common resource is not regulated,

Accepted Answer

A)  no one can enjoy it.
B)  it will tend to be underused.
C)  property rights will be clearly defined.
D)  it will be overused.E) A) and B)
F) None of the above

Question 9

Drivers have to pay a toll to drive on certain roads. In essence, a toll is a corrective tax on the externality of __________.

Accepted Answer

The answer of Drivers have to pay a toll to...

Question 10

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

Question 11

Which of the following is most likely to face extinction?

Accepted Answer

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 wildE) A) and B)
F) B) and C)

Question 12

A free-rider is someone who receives the benefit of a good but avoids paying for it.

Accepted Answer

A) True 
 B)False

Exam 11: Public Goods and Common Resources

Excludability is the property of a good whereby

Correct Answer
verified

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

Correct Answer
verified

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Correct Answer
verified

Because public goods are

Correct Answer
verified

Which of the following is most likely to face extinction?

Correct Answer
verified

A free-rider is someone who receives the benefit of a good but avoids paying for it.

Correct Answer
verified

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

Correct Answer
verified

If the use of a common resource is not regulated,

Correct Answer
verified

Drivers have to pay a toll to drive on certain roads. In essence, a toll is a corrective tax on the externality of __________.

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1. In which box - A, B, C, or D - does each of the following types of roads belong? (Consider each type of road separately.)• an uncongested toll road • an uncongested nontoll road • a congested toll road • a congested nontoll road

Correct Answer
verified
An uncongested toll road belon...
View Answer

Why has the value of ivory threatened the extinction of the elephant, whereas the value of beef has enhanced the survival of the cow?

Correct Answer
verified

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

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Excludability is the property of a good whereby

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Correct AnswerverifiedShow Answer

Because public goods are

Correct AnswerverifiedShow Answer

Which of the following is most likely to face extinction?

Correct AnswerverifiedShow Answer

A free-rider is someone who receives the benefit of a good but avoids paying for it.

Correct AnswerverifiedShow Answer

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

Correct AnswerverifiedShow Answer

If the use of a common resource is not regulated,

Correct AnswerverifiedShow Answer

Drivers have to pay a toll to drive on certain roads. In essence, a toll is a corrective tax on the externality of __________.

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1. In which box - A, B, C, or D - does each of the following types of roads belong? (Consider each type of road separately.)• an uncongested toll road • an uncongested nontoll road • a congested toll road • a congested nontoll road

Correct AnswerverifiedAn uncongested toll road belon...View AnswerShow Answer

Why has the value of ivory threatened the extinction of the elephant, whereas the value of beef has enhanced the survival of the cow?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

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
verified
An uncongested toll road belon...
View Answer

Correct Answer
verified

Correct Answer
verified