Question 1

The Great Lakes are

Accepted Answer

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

Question 2

Because it is

Accepted Answer

A)  neither excludable nor rival in consumption, a tornado siren is a common resource.
B)  neither excludable nor rival in consumption, a tornado siren is a public good.
C)  excludable but not rival in consumption, a tornado siren is a club good.
D)  rival in consumption but not excludable, a tornado siren is a common resource.E) A) and C)
F) C) and D)

Question 3

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

Question 4

The provision of a public good generates a

Accepted Answer

A)  positive externality, as does the use of a common resource.
B)  positive externality and the use of a common resource generates a negative externality.
C)  negative externality, as does the use of a common resource.
D)  negative externality and the use of a common resource generates a positive externality.E) C) and D)
F) A) and C)

Question 5

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) All of the above
F) B) and D)

Question 6

On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?

Accepted Answer

A)  The lack of a fireworks display in Yankeeville arises because of an externality.
B)  The lack of a fireworks display in Yankeeville is a case of market failure.
C)  In deciding not to produce a fireworks display in Yankeeville, private individuals and private firms made decisions that were privately rational but socially inefficient.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 7

A variable toll on a road in Washington reached a high during the evening rush hour of $5.75. This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?

Accepted Answer

A)  For some consumers, the toll was less than the opportunity cost of the time they would have spent in traffic.
B)  For some consumers, the toll was more than the opportunity cost of the time they would have spent in traffic.
C)  No consumers would find this toll worth the time saved in traffic.
D)  Both a and b are correct.E) A) and D)
F) None of the above

Question 8

Table 11-6
Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia. The four residents are trying to determine how many hours to spend in cleaning up the public lake. The table below shows each resident's willingness to pay for each hour of cleaning.  ​
​
-Refer to Table 11-6. Suppose the cost of cleaning the lake is $20 per hour, and that the residents have agreed to split the cost of cleaning the lake equally. If the residents vote to determine the number of hours spent cleaning the lake, basing their decision solely on what maximizes their own surplus, what is the most number of hours for which all four residents would vote "yes?"

Accepted Answer

A)  3 hours
B)  4 hours
C)  5 hours
D)  6 hoursE) C) and D)
F) B) and C)

Question 9

Suppose that you want to build a community garden for your neighborhood, which has 500 residents. The cost of the garden is $2,000, and each person values the garden at $3. After a month, you have only received 75 donations at $3 each. The result is that

Accepted Answer

A)  the local government should build the garden, but you should not.
B)  you should still build the garden, but the local government should not.
C)  neither you nor the local government should build the garden.
D)  either you or the local government should build the garden.E) A) and D)
F) B) and C)

Question 10

Goods that are rival in consumption and excludable would be considered

Accepted Answer

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

Question 11

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

Question 12

People can be prevented from using a good if the good is

Accepted Answer

A)  a private good or a club good.
B)  a private good or a common resource.
C)  a public good or a common resource.
D)  a private good or a public good.E) A) and D)
F) A) and C)

Question 13

Suppose that the Town of Mapledale is considering hiring an additional firefighter. The expected benefit is estimated to be worth $5 for each of Mapledale's 15,000 residents. What should the city do?

Accepted Answer

A)  Hire the firefighter because additional fire protection is priceless.
B)  Hire the firefighter if the cost of the new firefighter is less than $75,000.
C)  Do not hire the firefighter because the costs exceed the benefits.
D)  Hire the firefighter only if the benefit to the residents exceeds $75,000.E) B) and D)
F) All of the above

Question 14

Why does the commercial value of ivory threaten the elephant, while the commercial value of beef protects the cow?

Accepted Answer

Elephants are a common resource, whereas...

Question 15

Who among the following is a free rider?

Accepted Answer

A)  Ernie listens to National Public Radio, but does not contribute to any fundraising efforts.
B)  Bert takes the commuter rail to work, but he purchases the discounted monthly passes rather than buying tickets each day.
C)  Grover sends his 5 children to a private school rather than to the public school in his neighborhood.
D)  Oscar goes to Elmo's house to watch a football game on the local television channel.E) A) and C)
F) A) and B)

Question 16

Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?

Accepted Answer

A)  tablet computer, gym membership at a gym that always has plenty of open equipment and classes
B)  tablet computer, national defense
C)  congested nontoll road, national defense
D)  online music subscription, streetlightE) B) and C)
F) A) and D)

Question 17

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Accepted Answer

A)  Both the American drivers and the Soviet shoppers are consuming products at prices that do not represent the full costs of the products.
B)  Both the American drivers and the Soviet shoppers can purchase as much as they want at the market price.
C)  Both the American drivers and the Soviet shoppers could avoid waiting if the prices were lowered.
D)  American drivers and Soviet shoppers have nothing in common.E) All of the above
F) C) and D)

Question 18

The provision of public goods gives rise to

Accepted Answer

A)  no externalities.
B)  positive externalities.
C)  negative externalities.
D)  rivalries in consumption.E) A) and D)
F) A) and C)

Question 19

"Given that most people like to get 'free stuff,' it follows that goods that are available free of charge are produced and consumed in the proper amounts in a market economy." What is wrong with this statement?

Accepted Answer

In the absence of government interventio...

Question 20

A local park filled with picnickers is

Accepted Answer

A)  excludable and rival in consumption.
B)  excludable and not rival in consumption.
C)  not excludable and rival in consumption.
D)  not excludable and not rival in consumption.E) B) and C)
F) A) and B)

Exam 11: Public Goods and Common Resources

Because it is

Correct Answer
verified

On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?

Correct Answer
verified

The provision of a public good generates a

Correct Answer
verified

Correct Answer
verified

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Correct Answer
verified

The provision of public goods gives rise to

Correct Answer
verified

A local park filled with picnickers is

Correct Answer
verified

The Great Lakes are

Correct Answer
verified

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
verified

"Given that most people like to get 'free stuff,' it follows that goods that are available free of charge are produced and consumed in the proper amounts in a market economy." What is wrong with this statement?

Correct Answer
verified
In the absence of government interventio...
View Answer

People can be prevented from using a good if the good is

Correct Answer
verified

Why does the commercial value of ivory threaten the elephant, while the commercial value of beef protects the cow?

Correct Answer
verified
Elephants are a common resource, whereas...
View Answer

Suppose that the Town of Mapledale is considering hiring an additional firefighter. The expected benefit is estimated to be worth $5 for each of Mapledale's 15,000 residents. What should the city do?

Correct Answer
verified

Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?

Correct Answer
verified

Who among the following is a free rider?

Correct Answer
verified

National defense is a classic example of a public good because

Correct Answer
verified

Goods that are rival in consumption and excludable would be considered

Correct Answer
verified

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

Correct Answer
verified

Suppose that you want to build a community garden for your neighborhood, which has 500 residents. The cost of the garden is $2,000, and each person values the garden at $3. After a month, you have only received 75 donations at $3 each. The result is that

Correct Answer
verified

A variable toll on a road in Washington reached a high during the evening rush hour of $5.75. This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Because it is

Correct AnswerverifiedShow Answer

On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?

Correct AnswerverifiedShow Answer

The provision of a public good generates a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Correct AnswerverifiedShow Answer

The provision of public goods gives rise to

Correct AnswerverifiedShow Answer

A local park filled with picnickers is

Correct AnswerverifiedShow Answer

The Great Lakes are

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

"Given that most people like to get 'free stuff,' it follows that goods that are available free of charge are produced and consumed in the proper amounts in a market economy." What is wrong with this statement?

Correct AnswerverifiedIn the absence of government interventio...View AnswerShow Answer

People can be prevented from using a good if the good is

Correct AnswerverifiedShow Answer

Why does the commercial value of ivory threaten the elephant, while the commercial value of beef protects the cow?

Correct AnswerverifiedElephants are a common resource, whereas...View AnswerShow Answer

Suppose that the Town of Mapledale is considering hiring an additional firefighter. The expected benefit is estimated to be worth $5 for each of Mapledale's 15,000 residents. What should the city do?

Correct AnswerverifiedShow Answer

Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?

Correct AnswerverifiedShow Answer

Who among the following is a free rider?

Correct AnswerverifiedShow Answer

National defense is a classic example of a public good because

Correct AnswerverifiedShow Answer

Goods that are rival in consumption and excludable would be considered

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose that you want to build a community garden for your neighborhood, which has 500 residents. The cost of the garden is $2,000, and each person values the garden at $3. After a month, you have only received 75 donations at $3 each. The result is that

Correct AnswerverifiedShow Answer

A variable toll on a road in Washington reached a high during the evening rush hour of $5.75. This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
In the absence of government interventio...
View Answer

Correct Answer
verified

Correct Answer
verified
Elephants are a common resource, whereas...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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