FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Public Goods and Common Resources

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Goods that are rival in consumption but not excludable would be considered

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

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

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

The degradation of the environment from litter is a

A) a negative externality.
B) free rider problem.
C) Tragedy of the Commons.
D) Both a and c are correct.

E) A) and C)
F) C) and D)

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Before considering any public project, the government should (i) compare the total cost and total benefits of the project. (ii) conduct a cost-benefit analysis. (iii) infer that citizens who vote for a project are willing to pay equally for it.

If one person's use of a good diminishes another person's enjoyment of it, the good is

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

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

Excessive fishing occurs because

Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000. The average damage done to vehicles that slide off the road at the curve is $10,000. It is expected that the guard rail will prevent 5 vehicles from sliding off the road during its usable life. What should the county do?

Identify the externality that arises when basic research leads to new general knowledge. Is the externality positive or negative?

Which of the following is correct regarding road tolls as a way to reduce traffic?

Aristotle writes, "What is common to many is taken least care of, for all men have greater regard for what is their own than for what they possess in common with others." In this statement, Aristotle is referring to the free-rider problem that occurs when a person receives the benefit of a good without paying for it.

Markets do not ensure that the air we breathe is clean because

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?

Free goods are usually efficiently allocated without government intervention.

Suppose a human life is worth $10 million. Installing a better lighting system in the city park would reduce the risk of someone being murdered there from 3.5 to 2.9 percent over the life of the system. The city should install the new lighting system if its cost does not exceed

When the value of a human life is calculated according to the economic contribution a person makes to society (as reflected in her income-earning potential) , the troubling implication is that

An absence of property rights often leads to market failure. When this is the case, how does society usually solve the problem?

A good that is excludable but not rival is known as a club good.

Table 11-1 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park. -Refer to Table 11-1. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?

When goods are available free of charge, the market forces that normally allocate resources in our economy are absent.