Question 1

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. To maximize their own surplus, how many streetlights would the Greene's like the town to install?

Accepted Answer

A)  0 streetlights
B)  1 streetlight
C)  2 streetlights
D)  3 streetlightsE) All of the above
F) B) and D)

Question 2

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 3

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

Question 4

The difference between specific knowledge and general knowledge is that

Accepted Answer

A)  the creation of general knowledge is usually more profitable for the creator.
B)  specific knowledge is excludable, while general knowledge is not excludable.
C)  general knowledge is excludable, while specific knowledge is not excludable.
D)  general knowledge is rival in consumption, while specific knowledge is not rival in consumption.E) All of the above
F) A) and C)

Question 5

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Accepted Answer

A)  subsidizing basic research
B)  building lighthouses
C)  toll charges on congested roads
D)  cost-benefit analysisE) A) and D)
F) C) and D)

Question 6

Which of the following is not a typical solution to the "Tragedy of the Commons?"

Accepted Answer

A)  taxing the use of the common resource
B)  turning the common resource into a club good
C)  turning the common resource into a private good
D)  regulating the use of the common resourceE) C) and D)
F) A) and B)

Question 7

Markets fail to allocate resources efficiently when

Accepted Answer

A)  demanders and suppliers cannot agree on a price.
B)  goods are rival in consumption and excludable.
C)  property rights are not well established.
D)  too many buyers and sellers exist in the same market.E) C) and D)
F) B) and C)

Question 8

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Accepted Answer

A)  those who stand to gain have an incentive to tell the truth.
B)  those who stand to lose have an incentive to exaggerate their true costs.
C)  answers to the survey questions will always be downwardly biased.
D)  not everyone asked will be using the highway.E) B) and C)
F) None of the above

Question 9

Pay-per-view broadcasts are

Accepted Answer

A)  private goods.
B)  club goods.
C)  common resources.
D)  public goods.E) All of the above
F) C) and D)

Question 10

Advocates of antipoverty programs claim that fighting poverty is a public good.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  Grand Canyon National Park on a rainy, cool day
B)  Disney World on a rainy, cool day
C)  a crowded public beach on a sunny, warm day
D)  White Mountain ski resort on a sunny, mild dayE) A) and B)
F) All of the above

Question 12

Even economists who advocate small government agree that national defense is a good that the government should provide.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  club goods.
B)  common resources.
C)  public goods.
D)  private goods.E) C) and D)
F) All of the above

Question 14

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 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?

Accepted Answer

A)  -$40
B)  $0
C)  $40
D)  $60E) A) and D)
F) A) and B)

Question 15

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

A view of a spectacular sunset along a private beach is an example of a

Accepted Answer

A)  private good.
B)  public good.
C)  nonrival but excludable good.
D)  rival but nonexcludable good.E) B) and C)
F) A) and C)

Question 18

Figure 11-1 
-Refer to Figure 11-1. In which box - A, B, C, or D - does clean air belong?

Accepted Answer

Clean air is a commo...

Question 19

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

Question 20

Which two types of goods are excludable?

Accepted Answer

Private go...

Exam 11: Public Goods and Common Resources

A view of a spectacular sunset along a private beach is an example of a

Correct Answer
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Correct Answer
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Advocates of antipoverty programs claim that fighting poverty is a public good.

Correct Answer
verified

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

Correct Answer
verified

Even economists who advocate small government agree that national defense is a good that the government should provide.

Correct Answer
verified

Which two types of goods are excludable?

Correct Answer
verified
Private go...
View 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 Answer
verified

Pay-per-view broadcasts are

Correct Answer
verified

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Correct Answer
verified

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Correct Answer
verified

Correct Answer
verified

Markets fail to allocate resources efficiently when

Correct Answer
verified

The difference between specific knowledge and general knowledge is that

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1. In which box - A, B, C, or D - does clean air belong?

Correct Answer
verified
Clean air is a commo...
View Answer

One of the least regulated common resources today is

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

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

Correct Answer
verified

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Correct Answer
verified

Which of the following is not a typical solution to the "Tragedy of the Commons?"

Correct Answer
verified

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

Correct Answer
verified

Exam 11: Public Goods and Common Resources

A view of a spectacular sunset along a private beach is an example of a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Advocates of antipoverty programs claim that fighting poverty is a public good.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Even economists who advocate small government agree that national defense is a good that the government should provide.

Correct AnswerverifiedShow Answer

Which two types of goods are excludable?

Correct AnswerverifiedPrivate go...View AnswerShow 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

Pay-per-view broadcasts are

Correct AnswerverifiedShow Answer

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Correct AnswerverifiedShow Answer

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Markets fail to allocate resources efficiently when

Correct AnswerverifiedShow Answer

The difference between specific knowledge and general knowledge is that

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1. In which box - A, B, C, or D - does clean air belong?

Correct AnswerverifiedClean air is a commo...View AnswerShow Answer

One of the least regulated common resources today is

Correct AnswerverifiedShow Answer

Which of the following would be considered a private good?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Correct AnswerverifiedShow Answer

Which of the following is not a typical solution to the "Tragedy of the Commons?"

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Private go...
View 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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Clean air is a commo...
View 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
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Correct Answer
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