Question 1

A stairwell in a certain office building is always congested at 12:00 p.m. and 1:00 p.m. The congestion is so bad that people have been complaining to the building's owner. Which of the following methods would be the most efficient way of reducing congestion?

Accepted Answer

A)   Assign each person in the building a time when they are allowed to use the stairwell.
B)   Encourage people to voluntarily keep off the stairwell during peak times.
C)   Charge everyone who uses the stairwell when it is congested the same fee. People who value the use of the stairs the most will be the ones who use the stairwell at peak times.
D)   Hold a lottery to determine who wins the right to use the stairwell at peak times.E) None of the above
F) A) and B)

Question 2

Which of the following would be considered a private good?

Accepted Answer

A)   a ferry boat ride to an island with open seating
B)   a public beach
C)   fish in the ocean
D)   a swimming suitE) A) and B)
F) All of the above

Question 3

Variable tolls on roads

Accepted Answer

A)   are politically unpopular because people do not like the idea of paying for a good that they used to consume without paying for it directly.
B)   rise when traffic volume increases to ensure the speed on the road is kept high.
C)   are an effective way of correcting the common resource problem on roads.
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 4

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 B)

Question 5

London drivers who choose to drive in "congestion zones" pay a tax designed to reduce traffic congestion.

Accepted Answer

A) True 
 B)False

Question 6

One of the least regulated common resources today is

Accepted Answer

A)   state parks.
B)   the ocean.
C)   forest preserves.
D)   the Great Lakes.E) All of the above
F) B) and C)

Question 7

Which of the following is not an advantage to congestion charges for motorists who wish to drive on busy streets?

Accepted Answer

A)   reduced travel time during peak hours
B)   reduced need for public transportation
C)   improved environmental quality
D)   improved valuation of a common resourceE) C) and D)
F) None of the above

Question 8

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

Question 9

Which of the following is not a characteristic of a public good?

Accepted Answer

A)   It is not excludable.
B)   It is not diminished or depreciated as additional people consume the good.
C)   Its benefits cannot be withheld from anyone.
D)   Because it is a free good, there is no opportunity cost.E) B) and D)
F) B) and C)

Question 10

When something of value has no price attached to it,

Accepted Answer

A)   externalities will be present.
B)   production of the product has no cost.
C)   government should not intervene to produce the product.
D)   private companies will eventually produce the product, and the good will no longer be free.E) A) and D)
F) B) and C)

Question 11

An overcrowded beach is an example of

Accepted Answer

A)   a positive externality.
B)   a Tragedy of the Commons.
C)   an environmentally inefficient allocation of resources.
D)   an economically unfair allocation of resources.E) All of the above
F) B) and D)

Question 12

The failure of markets to adequately protect the environment can viewed either as a problem of

Accepted Answer

A)   externalities or as a problem of common resources.
B)   externalities or as a problem of private goods.
C)   the overprovision of public goods or as a problem of the underprovision of private goods.
D)   club goods or as a problem that arises when the quantity of excludable goods exceeds the socially-efficient quantity.E) None of the above
F) A) and C)

Question 13

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 14

Goods that are excludable include both

Accepted Answer

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

Question 15

On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. Suppose that the Minnesota State Park Service institutes a variable fee structure. On weekdays when the picnic areas get little use, the fee is zero. On normal weekends, the fee is $8 per person. On holiday weekends, the fee is $14 per person. The fee system corrects a problem known as the

Accepted Answer

A)   Coase theorem.
B)   free rider problem.
C)   Tragedy of the Commons.
D)   public goods problem.E) None of the above
F) A) and B)

Question 16

Table 11-5
A small island off the coast of Cape Cod contains two restaurants and two retail stores. Tourists need to take a ferry boat to reach the island, but with a recent slowdown in the economy, tourists are less willing to pay for the boat ride to visit the island. The owners of the restaurants and stores on the island - Restaurants 1 and 2, and Stores A and B - think that if tourists could ride the ferry for free, they would be happy to visit the island, eat and shop. The business owners are considering contributing to a pool of money that will be used to pay for roundtrip ferry service each day. The table represents their willingness to pay, that is, the maximum amount that each business owner is willing to contribute, per day, to pay for each ferry trip.
 
-Refer to Table 11-5. Suppose the cost to run the ferry for each roundtrip is $750. Then total surplus for the 4 business owners is

Accepted Answer

A)   $750 if there is 1 ferry trip.
B)   $40 if there are 2 ferry trips.
C)   $150 if there are 3 ferry trips.
D)   -$400 if there are 4 ferry trips.E) A) and B)
F) C) and D)

Question 17

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Accepted Answer

A) True 
 B)False

Question 18

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 produced by a natural monopoly.
D)   rival in consumption but not excludable, a tornado siren is a common resource.E) A) and B)
F) All of the above

Question 19

Elephants are endangered, but cows are not because

Accepted Answer

A)   cows are not as valuable as elephants.
B)   elephants are a common resource, while cows are private goods.
C)   cows are a common resource, while elephants are private goods.
D)   it is legal to kill cows but not elephants.E) B) and C)
F) A) and B)

Question 20

When goods do not have a price, which of the following primarily ensures that the good is produced?

Accepted Answer

A)   buyers
B)   sellers
C)   government
D)   the marketE) A) and B)
F) A) and D)

Exam 11: Public Goods and Common Resources

Elephants are endangered, but cows are not because

Correct Answer
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Which of the following would be considered a private good?

Correct Answer
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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

Which of the following is not a public good?

Correct Answer
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Correct Answer
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When something of value has no price attached to it,

Correct Answer
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A stairwell in a certain office building is always congested at 12:00 p.m. and 1:00 p.m. The congestion is so bad that people have been complaining to the building's owner. Which of the following methods would be the most efficient way of reducing congestion?

Correct Answer
verified

One of the least regulated common resources today is

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not an advantage to congestion charges for motorists who wish to drive on busy streets?

Correct Answer
verified

Correct Answer
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Which of the following is not a characteristic of a public good?

Correct Answer
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When goods do not have a price, which of the following primarily ensures that the good is produced?

Correct Answer
verified

London drivers who choose to drive in "congestion zones" pay a tax designed to reduce traffic congestion.

Correct Answer
verified

The failure of markets to adequately protect the environment can viewed either as a problem of

Correct Answer
verified

An overcrowded beach is an example of

Correct Answer
verified

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Correct Answer
verified

Because it is

Correct Answer
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Goods that are excludable include both

Correct Answer
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Variable tolls on roads

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Elephants are endangered, but cows are not because

Correct AnswerverifiedShow Answer

Which of the following would be considered a private good?

Correct AnswerverifiedShow 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

Which of the following is not a public good?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When something of value has no price attached to it,

Correct AnswerverifiedShow Answer

A stairwell in a certain office building is always congested at 12:00 p.m. and 1:00 p.m. The congestion is so bad that people have been complaining to the building's owner. Which of the following methods would be the most efficient way of reducing congestion?

Correct AnswerverifiedShow Answer

One of the least regulated common resources today is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not an advantage to congestion charges for motorists who wish to drive on busy streets?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of a public good?

Correct AnswerverifiedShow Answer

When goods do not have a price, which of the following primarily ensures that the good is produced?

Correct AnswerverifiedShow Answer

London drivers who choose to drive in "congestion zones" pay a tax designed to reduce traffic congestion.

Correct AnswerverifiedShow Answer

The failure of markets to adequately protect the environment can viewed either as a problem of

Correct AnswerverifiedShow Answer

An overcrowded beach is an example of

Correct AnswerverifiedShow Answer

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Correct AnswerverifiedShow Answer

Because it is

Correct AnswerverifiedShow Answer

Goods that are excludable include both

Correct AnswerverifiedShow Answer

Variable tolls on roads

Correct AnswerverifiedShow Answer

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

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Correct Answer
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Correct Answer
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