Question 1

No individual is willing to pay for the efficient quantity of a public good because the marginal benefit to an individual _____ the marginal social benefit.

Accepted Answer

A) equals 
B) exceeds 
C) is less than 
D) may be equal to or greater than 
A) equals 
B) exceeds 
C) is less than 
D) may be equal to or greater than

Question 2

If a good is subject to the free-rider problem and an inefficiently low level of production when left to the private market,the good must be a(n):

Accepted Answer

A) private good. 
B) public good. 
C) illegal good 
D) artificially scarce good. 
A) private good. 
B) public good. 
C) illegal good 
D) artificially scarce good.

Question 3

An inefficient allocation of resources will occur when:

Accepted Answer

A) decision makers are faced with the full costs and benefits of their actions. 
B) there are clearly defined property rights. 
C) no alternative would increase the welfare of society. 
D) decision makers are not faced with the full benefits and costs of their choices. 
A) decision makers are faced with the full costs and benefits of their actions. 
B) there are clearly defined property rights. 
C) no alternative would increase the welfare of society. 
D) decision makers are not faced with the full benefits and costs of their choices.

Question 4

Which good is MOST likely an artificially scarce good?

Accepted Answer

A) a ticket to a boxing match 
B) pay-per-view of a boxing match 
C) health care 
D) the police department 
A) a ticket to a boxing match 
B) pay-per-view of a boxing match 
C) health care 
D) the police department

Question 5

A private good is a good or service for which exclusion is _____ and that is _____ in consumption.

Accepted Answer

A) possible;rival 
B) possible;nonrival 
C) not possible;rival 
D) not possible;nonrival 
A) possible;rival 
B) possible;nonrival 
C) not possible;rival 
D) not possible;nonrival

Question 6

An artificially scarce good is similar to a public good in that it is _____,but it is also similar to a private good in that it is _____.

Accepted Answer

A) nonrival in consumption;nonexcludable 
B) nonrival in consumption;excludable 
C) excludable;nonrival in consumption 
D) nonexcludable;rival in consumption 
A) nonrival in consumption;nonexcludable 
B) nonrival in consumption;excludable 
C) excludable;nonrival in consumption 
D) nonexcludable;rival in consumption

Question 7

Use the following to answer question:  
-(Table: Security in a Residential Community)Use Table: Security in a Residential Community.Suppose that the residential community has 100 residents.The marginal cost of hiring the second security guard is _____,and the marginal social benefit is _____.

Accepted Answer

A) $150;$200 
B) $450;$1,800 
C) $150;$600 
D) $450;$600 
A) $150;$200 
B) $450;$1,800 
C) $150;$600 
D) $450;$600

Question 8

Use the following to answer question:  
-(Table: Total Cost and Total Individual Benefit)Use Table: Total Cost and Total Individual Benefit.If an individual resident were to decide about hiring and paying for animal control officers on his or her own,how many officers would that resident hire?

Accepted Answer

A) 0 
B) 1 
C) 3 
D) 5 
A) 0 
B) 1 
C) 3 
D) 5

No individual is willing to pay for the efficient quantity of a public good because the marginal benefit to an individual _____ the marginal social benefit.

If a good is subject to the free-rider problem and an inefficiently low level of production when left to the private market,the good must be a(n):

An inefficient allocation of resources will occur when:

Which good is MOST likely an artificially scarce good?

A private good is a good or service for which exclusion is _ and that is _ in consumption.

An artificially scarce good is similar to a public good in that it is _,but it is also similar to a private good in that it is _.

Use the following to answer question: -(Table: Security in a Residential Community)Use Table: Security in a Residential Community.Suppose that the residential community has 100 residents.The marginal cost of hiring the second security guard is _,and the marginal social benefit is _.

Use the following to answer question: -(Table: Total Cost and Total Individual Benefit)Use Table: Total Cost and Total Individual Benefit.If an individual resident were to decide about hiring and paying for animal control officers on his or her own,how many officers would that resident hire?

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Exam 17: Public Goods and Common Resources

No individual is willing to pay for the efficient quantity of a public good because the marginal benefit to an individual _____ the marginal social benefit.

If a good is subject to the free-rider problem and an inefficiently low level of production when left to the private market,the good must be a(n):

An inefficient allocation of resources will occur when:

Which good is MOST likely an artificially scarce good?

A private good is a good or service for which exclusion is _____ and that is _____ in consumption.

An artificially scarce good is similar to a public good in that it is _____,but it is also similar to a private good in that it is _____.

Use the following to answer question: -(Table: Security in a Residential Community)Use Table: Security in a Residential Community.Suppose that the residential community has 100 residents.The marginal cost of hiring the second security guard is _____,and the marginal social benefit is _____.

Use the following to answer question: -(Table: Total Cost and Total Individual Benefit)Use Table: Total Cost and Total Individual Benefit.If an individual resident were to decide about hiring and paying for animal control officers on his or her own,how many officers would that resident hire?

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

A private good is a good or service for which exclusion is _ and that is _ in consumption.

An artificially scarce good is similar to a public good in that it is _,but it is also similar to a private good in that it is _.

Use the following to answer question: -(Table: Security in a Residential Community)Use Table: Security in a Residential Community.Suppose that the residential community has 100 residents.The marginal cost of hiring the second security guard is _,and the marginal social benefit is _.