Question 1

The Pennsylvania Turnpike is a tolled freeway running through the state of Pennsylvania. Motorists must pay tolls at various points along the Turnpike based on the distance they traveled on the freeway. Suppose that despite the tolls, many motorists in the urban areas use the Turnpike causing traffic to slow during peak times. What type of good would the Turnpike be classified as in this case?

Accepted Answer

A)  Private good
B)  Club good
C)  Common resource
D)  Public goodE) B) and D)
F) B) and C)

Question 2

A traffic light would be considered a common resource.

Accepted Answer

A) True 
 B)False

Question 3

Figure 11-1
​
 
-Refer to Figure 11-1. A membership at a gym that always has space in classes and on machines is an example of the type of good represented by Box

Accepted Answer

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

Question 4

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 5

The privately-owned school system in Fort Yaman has a virtually unlimited capacity. It accepts all applicants and operates on both tuition and private donations. Although every resident places value on having an educated community, the school's revenues have suffered lately due to a large decline in private donations from the elderly population. Because the benefit that each citizen receives from having an educated community is a public good, which of the following would not be correct?

Accepted Answer

A)  The free-rider problem causes the private market to undersupply education to the community.
B)  The government can potentially help the market reach a socially optimal level of education.
C)  A tax increase to pay for education could potentially make the community better off.
D)  The private market is the best way to supply education.E) A) and B)
F) None of the above

Question 6

On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. An economist would suggest that

Accepted Answer

A)  every electric customer has an incentive to prevent the system from overloading, so this voluntary approach is the most efficient.
B)  it would be more efficient if the electric company raised its rates for electricity at peak times.
C)  it would be more efficient to have a lottery to decide who had to cut back their use of electricity at peak times.
D)  it would be more efficient to force everyone to cut their usage of electricity by the same amount.E) A) and B)
F) B) and C)

Question 7

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Accepted Answer

A) True 
 B)False

Question 8

Are common resources excludable? Are they rival in consumption?

Accepted Answer

No, common resources...

Question 9

Nontoll roads can be either public goods or common resources, depending upon the degree of congestion.

Accepted Answer

A) True 
 B)False

Question 10

London drivers who choose to drive in "congestion zones" pay a tax designed to reduce traffic congestion.

Accepted Answer

A) True 
 B)False

Question 11

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) B) and C)

Question 12

Before considering any public project, the government should

Accepted Answer

A)  only measure the total benefits of the project.
B)  only measure the cost of the project.
C)  conduct a cost-benefit analysis and compare the total cost and total benefits of the project.
D)  infer that citizens who vote for a project are willing to pay equally for it.E) B) and C)
F) A) and D)

Question 13

All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

Accepted Answer

A) True 
 B)False

Question 14

A study that compares the costs and benefits to society of providing a public good is called externality analysis.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following would not be considered a private good?

Accepted Answer

A)  A pencil
B)  A sweater
C)  A jeep
D)  Cable TV serviceE) A) and B)
F) None of the above

Question 16

A good is excludable if

Accepted Answer

A)  one person's use of the good diminishes another person's enjoyment of it.
B)  the government can regulate its availability.
C)  it is not a normal good.
D)  people can be prevented from using it.E) A) and B)
F) None of the above

Question 17

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 18

A free rider is a person who

Accepted Answer

A)  will only purchase a product on sale.
B)  receives the benefit of a good but avoids paying for it.
C)  can produce a good at no cost.
D)  rides public transit regularly.E) A) and B)
F) None of the above

Question 19

A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it.

Accepted Answer

A) True 
 B)False

Question 20

Goods that are excludable include both

Accepted Answer

A)  club goods and public goods.
B)  public goods and common resources.
C)  common resources and private goods.
D)  private goods and club goods.E) C) and D)
F) A) and D)

Exam 11: Public Goods and Common Resources

A free rider is a person who

Correct Answer
verified

Nontoll roads can be either public goods or common resources, depending upon the degree of congestion.

Correct Answer
verified

On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. An economist would suggest that

Correct Answer
verified

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Correct Answer
verified

Correct Answer
verified

Which of the following would not be considered a private good?

Correct Answer
verified

All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

Correct Answer
verified

A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it.

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1. A membership at a gym that always has space in classes and on machines is an example of the type of good represented by Box

Correct Answer
verified

Correct Answer
verified

London drivers who choose to drive in "congestion zones" pay a tax designed to reduce traffic congestion.

Correct Answer
verified

Are common resources excludable? Are they rival in consumption?

Correct Answer
verified
No, common resources...
View Answer

Before considering any public project, the government should

Correct Answer
verified

A study that compares the costs and benefits to society of providing a public good is called externality analysis.

Correct Answer
verified

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

Correct Answer
verified

A textbook is a

Correct Answer
verified

A good is excludable if

Correct Answer
verified

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

Goods that are excludable include both

Correct Answer
verified

A traffic light would be considered a common resource.

Correct Answer
verified

Exam 11: Public Goods and Common Resources

A free rider is a person who

Correct AnswerverifiedShow Answer

Nontoll roads can be either public goods or common resources, depending upon the degree of congestion.

Correct AnswerverifiedShow Answer

On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. An economist would suggest that

Correct AnswerverifiedShow Answer

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following would not be considered a private good?

Correct AnswerverifiedShow Answer

All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

Correct AnswerverifiedShow Answer

A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it.

Correct AnswerverifiedShow Answer

Figure 11-1 ​ -Refer to Figure 11-1. A membership at a gym that always has space in classes and on machines is an example of the type of good represented by Box

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

London drivers who choose to drive in "congestion zones" pay a tax designed to reduce traffic congestion.

Correct AnswerverifiedShow Answer

Are common resources excludable? Are they rival in consumption?

Correct AnswerverifiedNo, common resources...View AnswerShow Answer

Before considering any public project, the government should

Correct AnswerverifiedShow Answer

A study that compares the costs and benefits to society of providing a public good is called externality analysis.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A textbook is a

Correct AnswerverifiedShow Answer

A good is excludable if

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

Goods that are excludable include both

Correct AnswerverifiedShow Answer

A traffic light would be considered a common resource.

Correct AnswerverifiedShow 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

Figure 11-1 -Refer to Figure 11-1. A membership at a gym that always has space in classes and on machines is an example of the type of good represented by Box

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
No, common resources...
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