Question 1

It would always be a mistake to view

Accepted Answer

A)   many species of animals as common resources.
B)   a road as a public good.
C)   national defense as a common resource.
D)   a fireworks display as a public good.E) A) and B)
F) A) and C)

Question 2

The government provides public goods because

Accepted Answer

A)   private markets are incapable of producing these types of goods.
B)   free-riders make it difficult for private markets to supply the socially optimal quantity.
C)   markets are always better off with some government oversight.
D)   external benefits will accrue to private producers.E) None of the above
F) A) and B)

Question 3

Pay-per-view broadcasts are

Accepted Answer

A)   private goods.
B)   club goods.
C)   common resources.
D)   public goods.E) All of the above
F) A) and B)

Question 4

Figure 11-1
Rival in Consumption?
Yes No
Excludable? Yes Yes     No -Refer to Figure 11-1. A tornado siren in a small town is an example of the type of good represented by Box A)  A. B)  B. C)  C. D)  D." class="answers-bank-image d-inline" rel="preload" > Yes     No -Refer to Figure 11-1. A tornado siren in a small town is an example of the type of good represented by Box A)  A. B)  B. C)  C. D)  D." class="answers-bank-image d-inline" rel="preload" > No
-Refer to Figure 11-1. A tornado siren in a small town 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) All of the above

Question 5

Why is cable TV reception regarded as a club good?

Accepted Answer

Cable TV reception is excludable, becaus...

Question 6

The free-rider problem exists with

Accepted Answer

A)   public transportation
B)   knowledge.
C)   online music subscriptions.
D)   All of the above are correct.E) C) and D)
F) A) and C)

Question 7

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

Question 8

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 9

A lighthouse is typically considered to be a public good because

Accepted Answer

A)   the owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse.
B)   there is rarely another lighthouse nearby to provide competition.
C)   a nearby port authority cannot avoid paying fees to the lighthouse owner.
D)   all passing ships are able to enjoy the benefits of the lighthouse without paying.E) A) and B)
F) B) and C)

Question 10

Which of the following statements is correct?

Accepted Answer

A)   Environmental degradation is an example of a free rider problem..
B)   The division between public goods and common resources is clear-cut.
C)   Some goods, such as lighthouses, may be either private or public goods.
D)   The free-rider problem prevents governments from supplying public goods.E) All of the above
F) A) and B)

Question 11

Goods that are rival in consumption but not excludable would be considered

Accepted Answer

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

Question 12

Even economists who advocate small government agree that national defense is a good that the government should provide.

Accepted Answer

A) True 
 B)False

Question 13

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 14

In deciding whether a good is a public good, one must determine the

Accepted Answer

A)   incomes of those who benefit from the good.
B)   value of the external benefits that accrue to resource owners.
C)   excludability of the good.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 15

In the Tragedy of the Commons parable, if the medieval townspeople had foreseen the tragedy, then they could have dealt with the problem in much the same way that modern society deals with

Accepted Answer

A)   fire protection.
B)   poverty.
C)   pollution.
D)   national defense.E) B) and C)
F) None of the above

Question 16

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 D)
F) A) and B)

Question 17

One possible solution to the problem of protecting a common resource is to convert that resource to a private good.

Accepted Answer

A) True 
 B)False

Question 18

For private goods allocated in markets,

Accepted Answer

A)   prices guide the decisions of buyers and sellers and these decisions lead to an efficient allocation of resources.
B)   prices guide the decisions of buyers and sellers and these decisions lead to an inefficient allocation of resources.
C)   the government guides the decisions of buyers and sellers and these decisions lead to an efficient allocation of resources.
D)   the government guides the decisions of buyers and sellers and these decisions lead to an inefficient allocation of resources.E) B) and D)
F) B) and C)

Question 19

National defense is a classic example of a public good because

Accepted Answer

A)   there is no market for private security services.
B)   it is difficult to exclude people from receiving the benefits from national defense once it is provided.
C)   everyone agrees that some level of national defense is important, but only the government knows the optimal amount.
D)   there are no private firms willing to supply defense goods such as tanks and weapons.E) B) and D)
F) A) and D)

Question 20

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

Exam 11: Public Goods and Common Resources

Even economists who advocate small government agree that national defense is a good that the government should provide.

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

Why is cable TV reception regarded as a club good?

Correct Answer
verified
Cable TV reception is excludable, becaus...
View Answer

National defense is a classic example of a public good because

Correct Answer
verified

The government provides public goods because

Correct Answer
verified

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

Correct Answer
verified

The free-rider problem exists with

Correct Answer
verified

Correct Answer
verified

Figure 11-1 Rival in Consumption? Yes No Excludable? ^Yes No -Refer to Figure 11-1. A tornado siren in a small town is an example of the type of good represented by Box

Correct Answer
verified

Pay-per-view broadcasts are

Correct Answer
verified

In deciding whether a good is a public good, one must determine the

Correct Answer
verified

It would always be a mistake to view

Correct Answer
verified

For private goods allocated in markets,

Correct Answer
verified

In the Tragedy of the Commons parable, if the medieval townspeople had foreseen the tragedy, then they could have dealt with the problem in much the same way that modern society deals with

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

Which of the following statements is correct?

Correct Answer
verified

A lighthouse is typically considered to be a public good because

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

Goods that are rival in consumption but not excludable would be considered

Correct Answer
verified

One possible solution to the problem of protecting a common resource is to convert that resource to a private good.

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Even economists who advocate small government agree that national defense is a good that the government should provide.

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

Why is cable TV reception regarded as a club good?

Correct AnswerverifiedCable TV reception is excludable, becaus...View AnswerShow Answer

National defense is a classic example of a public good because

Correct AnswerverifiedShow Answer

The government provides public goods because

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The free-rider problem exists with

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 11-1 Rival in Consumption? Yes No Excludable? Yes No -Refer to Figure 11-1. A tornado siren in a small town is an example of the type of good represented by Box

Correct AnswerverifiedShow Answer

Pay-per-view broadcasts are

Correct AnswerverifiedShow Answer

In deciding whether a good is a public good, one must determine the

Correct AnswerverifiedShow Answer

It would always be a mistake to view

Correct AnswerverifiedShow Answer

For private goods allocated in markets,

Correct AnswerverifiedShow Answer

In the Tragedy of the Commons parable, if the medieval townspeople had foreseen the tragedy, then they could have dealt with the problem in much the same way that modern society deals with

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

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

A lighthouse is typically considered to be a public good because

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

Goods that are rival in consumption but not excludable would be considered

Correct AnswerverifiedShow Answer

One possible solution to the problem of protecting a common resource is to convert that resource to a private good.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Cable TV reception is excludable, becaus...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 11-1 Rival in Consumption? Yes No Excludable? ^Yes No -Refer to Figure 11-1. A tornado siren in a small town is an example of the type of good represented by Box

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified