Question 1

Some goods can be either common resources or public goods depending on

Accepted Answer

A)   whether the good is rival in consumption.
B)   whether the good is excludable.
C)   the marginal cost of the good.
D)   None of the above is correct.E) None of the above
F) All of the above

Question 2

A rather large city has only one fire station, two fire trucks, and four firefighters. Is fire protection in this city characterized by rivalry in consumption?

Accepted Answer

Fire protection in this city is somewher...

Question 3

Which of the following statements is not correct?

Accepted Answer

A)   Medical research can be an example of a public good.
B)   The private market will tend to undersupply public goods.
C)   The free-rider problem occurs when a good is nonexcludable.
D)   All goods provided by the government are public goods.E) None of the above
F) B) and C)

Question 4

Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws. Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws, we can likely conclude that

Accepted Answer

A)   international laws making it illegal to sell grizzly bear paws are likely to be very effective at eliminating these offerings at Hong Kong restaurants.
B)   higher penalties for poaching grizzly bears will prevent poachers from killing.
C)   there are likely to be very few grizzly bear poachers.
D)   allowing individuals to own and raise grizzly bears for meat would likely reduce the threat of extinction to grizzly bear populations.E) A) and B)
F) A) and C)

Question 5

Which of the following is not a public good?

Accepted Answer

A)   national defense
B)   patented technological knowledge
C)   general knowledge
D)   the elimination of povertyE) All of the above
F) A) and C)

Question 6

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. What is the value of the 99th unit of police protection in Safetyville?

Accepted Answer

A)   $0
B)   $6
C)   $12
D)   $18E) A) and B)
F) C) and D)

Question 7

Table 11-2
Consider a small town with only three families, the Greene family, the Brown family, and the Black family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight. 
-Refer to Table 11-2. Suppose the cost to install each streetlight is $600 and the families have agreed to split the cost of installing the streetlights equally. To maximize their own surplus, how many streetlights would the Brown's like the town to install?

Accepted Answer

A)   0 streetlights
B)   1 streetlight
C)   2 streetlights
D)   3 streetlightsE) None of the above
F) B) and D)

Question 8

Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely

Accepted Answer

A)   be provided by a private firm rather than the government.
B)   have a free-rider problem.
C)   not exist.
D)   be limited to a small number of units of production.E) A) and C)
F) None of the above

Question 9

The U.S. patent system

Accepted Answer

A)   makes general knowledge excludable.
B)   makes specific, technical knowledge excludable.
C)   creates a disincentive to invent.
D)   Both a and b are correct.E) B) and D)
F) A) and D)

Question 10

Scenario 11-3
Consider the following goods:
-a fish fillet served at a restaurant
-fish in the ocean
-exotic fish in a huge aquarium in a privately-owned building
-Refer to Scenario 11-3. Which of these goods is the best example of a private good? Briefly explain.

Accepted Answer

The fish fillet served by the ...

Question 11

One benefit of the patent system is that it encourages the production of technical knowledge.

Accepted Answer

A) True 
 B)False

Question 12

Under which of the following scenarios would a park be considered a common resource?

Accepted Answer

A)   Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables.
B)   Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use.
C)   Visitors can enter the park free of charge and there are always plenty of empty picnic tables.
D)   Visitors can enter the park free of charge, but frequently all of the picnic tables are in use.E) A) and D)
F) None of the above

Question 13

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 14

Figure 11-1
Rival in Consumption?
Yes No
Excludable? Yes   No
-Refer to Figure 11-1. The box labeled D represents what type of good?

Accepted Answer

Box D repr...

Question 15

Because elephants roam freely in many countries in Africa, each individual African elephant poacher has

Accepted Answer

A)   a strong incentive to kill as many elephants as he can find.
B)   a strong incentive to protect the elephants.
C)   the ability to save the elephants.
D)   None of the above is correct.E) All of the above
F) A) and C)

Question 16

A view of a spectacular sunset along a private beach is an example of a

Accepted Answer

A)   private good.
B)   public good.
C)   nonrival but excludable good.
D)   rival but nonexcludable good.E) B) and C)
F) C) and D)

Question 17

Examples of goods that are excludable include

Accepted Answer

A)   fireworks displays and fire protection.
B)   internet radio subscriptions and knowledge.
C)   premium movie channels and streetlights.
D)   mobile phones and fire protection.E) A) and B)
F) B) and C)

Question 18

In a certain city, the government is considering acquiring some land and turning it into a park (without any fences or gates) . In an attempt to determine the extent to which residents of the city would value the park, residents are asked to fill out a questionnaire. Which of the following is correct?

Accepted Answer

A)   On the questionnaire, some residents are likely to exaggerate the value they associate with the park.
B)   On the questionnaire, some residents are likely to exaggerate the costs they associate with the park.
C)   The use of such a questionnaire in cost-benefit analysis is likely to produce only rough approximations of residents' perceptions of the costs and benefits of a park.
D)   All of the above are correct.E) A) and C)
F) None of the above

Question 19

Mike Miller is the town manager of Medfield, a town with 50,000 residents. At a recent town meeting, several citizens proposed building a large public swimming pool in the center of town for all of the residents to enjoy. A survey of all 50,000 residents revealed that the pool would be worth $50 to each of them. Because the cost to build the swimming pool is only $1,000,000, Manager Miller arranges to have the pool built. Everyone in town enjoys the pool, but when Manager Miller asks for donations to pay for the pool, he only collects $250,000. Manager Miller soon realizes that

Accepted Answer

A)   the survey was conducted improperly.
B)   the cost of the pool exceeded the social benefits.
C)   the pool is a club good.
D)   most residents of the town are probably free-riders at the pool.E) B) and C)
F) None of the above

Question 20

A city street is

Accepted Answer

A)   always a public good, whether or not it is congested.
B)   a public good when it is congested, but it is a common resource when it is not congested.
C)   a common resource when it is congested, but it is a public good when it is not congested.
D)   always a common resource, whether or not it is congested.E) A) and B)
F) A) and C)

Exam 11: Public Goods and Common Resources

A view of a spectacular sunset along a private beach is an example of a

Correct Answer
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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
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National defense is ...
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Which of the following is not a public good?

Correct Answer
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Which of the following statements is not correct?

Correct Answer
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Some goods can be either common resources or public goods depending on

Correct Answer
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A rather large city has only one fire station, two fire trucks, and four firefighters. Is fire protection in this city characterized by rivalry in consumption?

Correct Answer
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Fire protection in this city is somewher...
View Answer

Correct Answer
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One benefit of the patent system is that it encourages the production of technical knowledge.

Correct Answer
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The U.S. patent system

Correct Answer
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Correct Answer
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Because elephants roam freely in many countries in Africa, each individual African elephant poacher has

Correct Answer
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Correct Answer
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Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws. Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws, we can likely conclude that

Correct Answer
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A city street is

Correct Answer
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Figure 11-1 Rival in Consumption? Yes No Excludable? Yes No -Refer to Figure 11-1. The box labeled D represents what type of good?

Correct Answer
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Box D repr...
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Scenario 11-3 Consider the following goods: -a fish fillet served at a restaurant -fish in the ocean -exotic fish in a huge aquarium in a privately-owned building -Refer to Scenario 11-3. Which of these goods is the best example of a private good? Briefly explain.

Correct Answer
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The fish fillet served by the ...
View Answer

Examples of goods that are excludable include

Correct Answer
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Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely

Correct Answer
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Under which of the following scenarios would a park be considered a common resource?

Correct Answer
verified

Exam 11: Public Goods and Common Resources

A view of a spectacular sunset along a private beach is an example of a

Correct AnswerverifiedShow 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

Which of the following is not a public good?

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Some goods can be either common resources or public goods depending on

Correct AnswerverifiedShow Answer

A rather large city has only one fire station, two fire trucks, and four firefighters. Is fire protection in this city characterized by rivalry in consumption?

Correct AnswerverifiedFire protection in this city is somewher...View AnswerShow Answer

Correct AnswerverifiedShow Answer

One benefit of the patent system is that it encourages the production of technical knowledge.

Correct AnswerverifiedShow Answer

The U.S. patent system

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Because elephants roam freely in many countries in Africa, each individual African elephant poacher has

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws. Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws, we can likely conclude that

Correct AnswerverifiedShow Answer

A city street is

Correct AnswerverifiedShow Answer

Figure 11-1 Rival in Consumption? Yes No Excludable? Yes No -Refer to Figure 11-1. The box labeled D represents what type of good?

Correct AnswerverifiedBox D repr...View AnswerShow Answer

Scenario 11-3 Consider the following goods: -a fish fillet served at a restaurant -fish in the ocean -exotic fish in a huge aquarium in a privately-owned building -Refer to Scenario 11-3. Which of these goods is the best example of a private good? Briefly explain.

Correct AnswerverifiedThe fish fillet served by the ...View AnswerShow Answer

Examples of goods that are excludable include

Correct AnswerverifiedShow Answer

Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely

Correct AnswerverifiedShow Answer

Under which of the following scenarios would a park be considered a common resource?

Correct AnswerverifiedShow Answer

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National defense is ...
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Fire protection in this city is somewher...
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Box D repr...
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The fish fillet served by the ...
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