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 1

Multiple Choice

Review LaterAdd Note

Review Later

Why do elephants face the threat of extinction while cows do not?

A) Cattle are a valuable source of income for many people, while elephants have no market value.
B) There is a high demand for products that come from cows, whereas there is no demand for products that come from elephants.
C) There are still lots of cattle that roam free, while all elephants live in zoos.
D) Cattle are owned by ranchers, while elephants are owned by no one.

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

Correct Answer

verified

Show Answer

Question 2

Essay

Review LaterAdd Note

Review Later

In what way do public goods give rise to positive externalities?

Correct Answer

verified

When one person provides a pub...

View Answer

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

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. If the residents choose to install the number of streetlights that will maximize total surplus from the streetlights, how much total surplus will the Greene family receive?

It is common knowledge that many U.S. national parks have become overused. One possible solution to this problem is to

National defense is a classic example of a public good because

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 and that the residents have agreed to split the cost of building the park equally. If the residents decide to build a park with size equal to the number of acres that maximizes total surplus from the park, how much total surplus will Amber receive?

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 $900. How many streetlights should the town install to maximize total surplus from the streetlights?

Which city currently charges drivers a "congestion toll" to drive into the heart of the city's financial, legal, and entertainment district?

Table 11-3 This table describes the police protection demands for three equal sized groups of people in Safetyville. The second, third, and fourth columns show the number of person-hours of police protection per day that a group will demand for a given price (the first column) . -Refer to Table 11-3. If the marginal cost of police protection is constant at $72 per person-hour, what is the efficient level of police protection to provide?

Congressman Smith and Congresswoman Johnson both consider themselves advocates for the national parks and are introducing different bills designed to benefit the parks. Congressman Smith's bill calls for an increase in the entrance fees. Congresswoman Johnson's bill calls for a decrease in the entrance fees. Which of the bills would be more effective at ensuring the quality of the national parks?

The provision of a public good generates a

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

The Occupational Safety and Health Administration (OSHA) has determined that 100 workers are exposed to a hazardous chemical used in the production of diet soft drinks. The cost of imposing a regulation that would ban the chemical is $10 million. OSHA has calculated that each person saved by this regulation has a value equal to $10 million. If the benefits are exactly equal to the costs, what probability is OSHA using to assess the likelihood of a fatality from exposure to this chemical?

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 and that the residents have agreed to split the cost of building the park equally. To maximize his own surplus, how many acres would Cedric like Springfield to build?

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

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

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 common resource? Briefly explain.

What do clean air in New York City and elephants in Africa have in common?

If no one can be prevented from using good x, then good x is one of two types of goods. What are those two types?

In a cost-benefit analysis, the value of a human life is sometimes calculated on the basis of