Question 1

An example of a private good would be:

Accepted Answer

A)  a tornado siren.
B)  a fireworks display.
C)  a piece of fruit.
D)  cable TV.E) A) and D)
F) A) and B)

Question 2

Table: Example GoodsA WatermelonA LighthouseSmog ReductionOnline Video GamesCable Internet ServiceNational DefenseA Private BeachA Public BeachA PencilSoup Kitchen MealsA ChairToll HighwaysPublic RoadsReference: Ref 18-2(Table: Example Goods)  Refer to the table. Which of thefollowing contains only excludable and nonrival goods fromthe table?

Accepted Answer

A)  cable Internet service, toll highways, public roads, soup kitchen meals
B)  online video games, a private beach, toll highways, cable Internet service
C)  public beaches, soup kitchen meals, public roads, smog reduction
D)  national defense, a lighthouse, smog reduction, cable Internet serviceE) A) and B)
F) B) and C)

Question 3

When a good is rival in consumption:

Accepted Answer

A)  people can be excluded from using the good.
B)  one person's use of the good prevents another's ability to use it.
C)  no more than one person can use the good at the same time.
D)  people can be prevented from using the good.E) All of the above
F) None of the above

Question 4

A solution to the tragedy of the commons is to convertcommon resources to private goods.

Accepted Answer

A) True 
 B)False

Question 5

Table: Example GoodsA WatermelonA LighthouseSmog ReductionOnline Video GamesCable Internet ServiceNational DefenseA Private BeachA Public BeachA PencilSoup Kitchen MealsA ChairToll HighwaysPublic RoadsReference: Ref 18-2(Table: Example Goods)  Refer to the table. Which of thefollowing contains only common resources from the table?

Accepted Answer

A)  online video games, a private beach, toll highways, cable Internet service
B)  a public beach, soup kitchen meals, public roads (True Answer ) Correct
C)  national defense, a lighthouse, smog reduction
D)  online video games, a public beach, soup kitchen meals, public roadsE) A) and B)
F) A) and C)

Question 6

Suppose your city has had an increase in crime and the citygovernment decides that more police are needed to patrol atnight. Which of the following funding solutions avoids thefree-rider problem involved with additional police officers?

Accepted Answer

A)  taxation of the city's top 50 percent of income earners
B)  donation-based police service
C)  voluntary police officers
D)  an increase in the city's sales taxE) B) and D)
F) C) and D)

Question 7

Common resources are goods that are:

Accepted Answer

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

Exam 18: Public Economy

Correct Answer
verified

Correct Answer
verified

When a good is rival in consumption:

Correct Answer
verified

Suppose your city has had an increase in crime and the citygovernment decides that more police are needed to patrol atnight. Which of the following funding solutions avoids thefree-rider problem involved with additional police officers?

Correct Answer
verified

An example of a private good would be:

Correct Answer
verified

A solution to the tragedy of the commons is to convertcommon resources to private goods.

Correct Answer
verified

Common resources are goods that are:

Correct Answer
verified

Exam 18: Public Economy

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a good is rival in consumption:

Correct AnswerverifiedShow Answer

Suppose your city has had an increase in crime and the citygovernment decides that more police are needed to patrol atnight. Which of the following funding solutions avoids thefree-rider problem involved with additional police officers?

Correct AnswerverifiedShow Answer

An example of a private good would be:

Correct AnswerverifiedShow Answer

A solution to the tragedy of the commons is to convertcommon resources to private goods.

Correct AnswerverifiedShow Answer

Common resources are goods that are:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified