Question 1

Although national defense is currently a public good,economists who advocate small government generally agree that the U.S.should privatize national defense to increase the efficiency of the good.

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

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

Question 4

Which of the following goods is rival and excludable?

Accepted Answer

A)   an uncongested toll road
B)   an uncongested nontoll road
C)   a congested nontoll road
D)   a congested toll roadE) C) and D)
F) B) and D)

Question 5

You and your friends watch a movie in your bedroom.For you and your friends,the enjoyment that you get from watching the movie is not rival in consumption.

Accepted Answer

A) True 
 B)False

Question 6

Advocates of antipoverty programs claim that fighting poverty

Accepted Answer

A)   is best accomplished by charities.
B)   is a public good.
C)   is more efficiently accomplished by the market.
D)   should not be attempted with tax dollars.E) B) and C)
F) C) and D)

Question 7

Four roommates share an off-campus house and equally share the cost of rent.Everyone says that she values a clean house,yet the house is usually dirty.To an economist,a clean house in this case represents

Accepted Answer

A)   a common resource problem.
B)   a public good.
C)   a natural monopoly.
D)   All of the above are correct.E) A) and C)
F) None of the above

Question 8

Table 11-1
Consider the town of Anywhere with only three residents,Mary,Bill,and Tricia.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 $33 per acre and that the residents have agreed to split the cost of building the park equally.To maximize his own surplus,how many acres would Bill like Anywhere to build?

Accepted Answer

A)   0 acres
B)   1 acre
C)   2 acres
D)   3 acresE) B) and C)
F) A) and D)

Question 9

A common theme among examples of market failure is

Accepted Answer

A)   the good being provided harms society in some systematic way.
B)   some item of value does not have an owner with the legal authority to control it.
C)   cost-benefit analysis will show that private markets should provide the goods and services.
D)   government intervention decreases the social benefits.E) None of the above
F) All of the above

Question 10

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

Accepted Answer

A)   a can of Coca-Cola
B)   cable TV service
C)   a fireworks display
D)   the environmentE) C) and D)
F) All of the above

Question 11

One solution to the "Tragedy of the Commons" is to turn the common resource into a private good.

Accepted Answer

A) True 
 B)False

Question 12

Are public goods excludable? Are they rival in consumption?

Accepted Answer

No,public goods are ...

Question 13

Table 11-5
A small strip mall contains four retail stores,and crime has recently been on the increase in the neighborhood of the strip mall.The owners of the four stores - Stores A,B,C,and D - are considering contributing to a pool of money that will be used to hire up to 4 security guards.The table represents their willingness to pay,that is,the maximum amount that each store owner is willing to contribute,per day,to hire each security guard.
 
-Refer to Table 11-5.Suppose the cost to hire each guard is $100 per day and the 4 store owners have agreed to split the costs of hiring guards equally.Which store owner(s) would be opposed to hiring any guards?

Accepted Answer

A)   only the owner of Store C
B)   only the owners of Stores A and C
C)   only the owners of Stores A,B,and C
D)   All 4 store owners would be opposed to hiring any guards.E) B) and D)
F) A) and D)

Question 14

Which of the following represents a potential solution to the problem of environmental pollution?

Accepted Answer

A)   corrective taxes
B)   well established property rights
C)   government regulation
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A congested side street in your neighborhood 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) A) and B)
F) A) and C)

Question 17

The idea that "externalities arise because something of value has no price attached to it" is associated with

Accepted Answer

A)   public goods,but not with common resources.
B)   common resources,but not with public goods.
C)   both public goods and common resources.
D)   neither public goods nor common resources.E) None of the above
F) A) and D)

Question 18

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) C) and D)
F) B) and C)

Question 19

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)   reduced carbon monoxide pollution
B)   increased use of public transportation
C)   improved taxi service
D)   shorter travel timeE) C) and D)
F) None of the above

Exam 11: Public Goods and Common Resources

A congested side street in your neighborhood is

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

Correct Answer
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National defense is a classic example of a public good because

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

Correct Answer
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Which of the following represents a potential solution to the problem of environmental pollution?

Correct Answer
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Goods that are excludable include both

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

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

Correct Answer
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Four roommates share an off-campus house and equally share the cost of rent.Everyone says that she values a clean house,yet the house is usually dirty.To an economist,a clean house in this case represents

Correct Answer
verified

One solution to the "Tragedy of the Commons" is to turn the common resource into a private good.

Correct Answer
verified

You and your friends watch a movie in your bedroom.For you and your friends,the enjoyment that you get from watching the movie is not rival in consumption.

Correct Answer
verified

Advocates of antipoverty programs claim that fighting poverty

Correct Answer
verified

A common theme among examples of market failure is

Correct Answer
verified

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

Correct Answer
verified

Which of the following goods is rival and excludable?

Correct Answer
verified

Are public goods excludable? Are they rival in consumption?

Correct Answer
verified
No,public goods are ...
View Answer

The idea that "externalities arise because something of value has no price attached to it" is associated with

Correct Answer
verified

Although national defense is currently a public good,economists who advocate small government generally agree that the U.S.should privatize national defense to increase the efficiency of the good.

Correct Answer
verified

Exam 11: Public Goods and Common Resources

A congested side street in your neighborhood is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

National defense is a classic example of a public good because

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following represents a potential solution to the problem of environmental pollution?

Correct AnswerverifiedShow Answer

Goods that are excludable include both

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

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

Four roommates share an off-campus house and equally share the cost of rent.Everyone says that she values a clean house,yet the house is usually dirty.To an economist,a clean house in this case represents

Correct AnswerverifiedShow Answer

One solution to the "Tragedy of the Commons" is to turn the common resource into a private good.

Correct AnswerverifiedShow Answer

You and your friends watch a movie in your bedroom.For you and your friends,the enjoyment that you get from watching the movie is not rival in consumption.

Correct AnswerverifiedShow Answer

Advocates of antipoverty programs claim that fighting poverty

Correct AnswerverifiedShow Answer

A common theme among examples of market failure is

Correct AnswerverifiedShow Answer

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

Correct AnswerverifiedShow Answer

Which of the following goods is rival and excludable?

Correct AnswerverifiedShow Answer

Are public goods excludable? Are they rival in consumption?

Correct AnswerverifiedNo,public goods are ...View AnswerShow Answer

The idea that "externalities arise because something of value has no price attached to it" is associated with

Correct AnswerverifiedShow Answer

Although national defense is currently a public good,economists who advocate small government generally agree that the U.S.should privatize national defense to increase the efficiency of the good.

Correct AnswerverifiedShow Answer

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No,public goods are ...
View Answer

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