Question 1

Stewart is a lobsterman. His traps are

Accepted Answer

A)   private goods and the lobster he catches are common resources.
B)   private goods and the lobster he catches are public goods.
C)   rival in consumption and the lobster he catches are not rival in consumption.
D)   not rival in consumption and the lobster he catches are not rival in consumption.E) C) and D)
F) All of the above

Question 2

Figure 11-1
 
-Refer to Figure 11-1. Which of the following items is not an example of the type of good represented by Box D?

Accepted Answer

A)   a mathematical theorem
B)   an uncongested toll road
C)   national defense
D)   fighting povertyE) A) and B)
F) A) and C)

Question 3

Which of the following statements is true of the tax on gasoline?

Accepted Answer

A)   The cost of collecting a gasoline tax outweighs the revenues raised by the tax.
B)   It is preferred to tolls as the best solution to road congestion.
C)   It discourages driving on noncongested roads, even though there is no congestion externality for these roads.
D)   Both b and c are correct.E) A) and C)
F) A) and B)

Question 4

What particular characteristic do public goods and club goods have in common?

Accepted Answer

Public goods and club goods ar...

Question 5

The goal of requiring licenses for hunting and fishing is

Accepted Answer

A)   to reduce the use of a common resource.
B)   to ensure that the people hunting and fishing are qualified.
C)   to generate revenue for the government.
D)   to monitor compliance with federal gun laws.E) B) and D)
F) A) and B)

Question 6

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 $360 and the families have agreed to split the cost of installing the streetlights equally. To maximize their own surplus, how many streetlights would the Greene's like the town to install?

Accepted Answer

A)   0 streetlights
B)   1 streetlight
C)   2 streetlights
D)   3 streetlightsE) B) and D)
F) B) and C)

Question 7

If the government decides to build a new highway, the first step would be to conduct a study to determine the value of the project. The study is called a

Accepted Answer

A)   budget analysis.
B)   project analysis.
C)   reimbursement analysis.
D)   cost-benefit analysis.E) C) and D)
F) All of the above

Question 8

The Tragedy of the Commons occurs because

Accepted Answer

A)   government property is most heavily used by the wealthy.
B)   everyone deserves an equal share of government property.
C)   social and private incentives differ.
D)   established property rights create competition.E) All of the above
F) A) and C)

Question 9

If Dave and Jesse are the only two fishermen in town and neither is bothered by the other's fishing, the lake they fish in is not a common resource.

Accepted Answer

A) True 
 B)False

Question 10

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 B)
F) All of the above

Question 11

Figure 11-1
Rival in Consumption?
  
-Refer to Figure 11-1. In which box - A, B, C, or D - does cable TV belong?

Accepted Answer

Cable TV i...

Question 12

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) B) and C)
F) None of the above

Question 13

Economists think that the best way to determine the value of a human life is to

Accepted Answer

A)   evaluate the value of a person's expected earnings in the labor market.
B)   evaluate the risks people are willing to take and what they would have to be paid to take them.
C)   determine a person's accumulated wealth at the time of death.
D)   do nothing; human life is priceless.E) B) and C)
F) B) and D)

Question 14

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) B) and D)
F) None of the above

Question 15

Figure 11-1
Rival in Consumption?
  
-Refer to Figure 11-1. The box labeled B represents what type of good?

Accepted Answer

Box B repr...

Question 16

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

Question 17

Consider a public road that anyone is allowed to drive on. If the road is often congested, the road would be considered a

Accepted Answer

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

Question 18

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 19

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 D)
F) None of the above

Question 20

Which of the following goods is both excludable and rival in consumption?

Accepted Answer

A)   a wristwatch
B)   fire protection in a small town
C)   fish in the ocean
D)   efforts to fight povertyE) A) and B)
F) All of the above

Exam 11: Public Goods and Common Resources

If Dave and Jesse are the only two fishermen in town and neither is bothered by the other's fishing, the lake they fish in is not a common resource.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Economists think that the best way to determine the value of a human life is to

Correct Answer
verified

Because public goods are

Correct Answer
verified

If the government decides to build a new highway, the first step would be to conduct a study to determine the value of the project. The study is called a

Correct Answer
verified

What particular characteristic do public goods and club goods have in common?

Correct Answer
verified
Public goods and club goods ar...
View Answer

Figure 11-1 Rival in Consumption? -Refer to Figure 11-1. In which box - A, B, C, or D - does cable TV belong?

Correct Answer
verified
Cable TV i...
View Answer

Consider a public road that anyone is allowed to drive on. If the road is often congested, the road would be considered a

Correct Answer
verified

The goal of requiring licenses for hunting and fishing is

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Figure 11-1 Rival in Consumption? -Refer to Figure 11-1. The box labeled B represents what type of good?

Correct Answer
verified
Box B repr...
View Answer

The Tragedy of the Commons occurs because

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

Which of the following goods is both excludable and rival in consumption?

Correct Answer
verified

Stewart is a lobsterman. His traps are

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1. Which of the following items is not an example of the type of good represented by Box D?

Correct Answer
verified

Which of the following statements is true of the tax on gasoline?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Exam 11: Public Goods and Common Resources

If Dave and Jesse are the only two fishermen in town and neither is bothered by the other's fishing, the lake they fish in is not a common resource.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Economists think that the best way to determine the value of a human life is to

Correct AnswerverifiedShow Answer

Because public goods are

Correct AnswerverifiedShow Answer

If the government decides to build a new highway, the first step would be to conduct a study to determine the value of the project. The study is called a

Correct AnswerverifiedShow Answer

What particular characteristic do public goods and club goods have in common?

Correct AnswerverifiedPublic goods and club goods ar...View AnswerShow Answer

Figure 11-1 Rival in Consumption? -Refer to Figure 11-1. In which box - A, B, C, or D - does cable TV belong?

Correct AnswerverifiedCable TV i...View AnswerShow Answer

Consider a public road that anyone is allowed to drive on. If the road is often congested, the road would be considered a

Correct AnswerverifiedShow Answer

The goal of requiring licenses for hunting and fishing is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 11-1 Rival in Consumption? -Refer to Figure 11-1. The box labeled B represents what type of good?

Correct AnswerverifiedBox B repr...View AnswerShow Answer

The Tragedy of the Commons occurs because

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

Which of the following goods is both excludable and rival in consumption?

Correct AnswerverifiedShow Answer

Stewart is a lobsterman. His traps are

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1. Which of the following items is not an example of the type of good represented by Box D?

Correct AnswerverifiedShow Answer

Which of the following statements is true of the tax on gasoline?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Public goods and club goods ar...
View Answer

Correct Answer
verified
Cable TV i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Box B repr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified