Exam 17: Public Goods and Common Resources

Use the following to answer question: Figure: Market Failure -(Figure: Market Failure)Use Figure: Market Failure.In the figure,which point coincides with the equilibrium for a competitive market?

A low voter turnout can be explained by noting that political engagement and action is arguably a kind of public good in that people who don't engage or vote can free-ride on those who do.

The BEST example of a private good is:

For which type of goods is the marginal social benefit necessarily greater than the marginal private benefit?

The marginal cost of producing an artificially scarce good is usually equal to:

Use the following to answer question: Figure: Correcting for Market Failure -(Figure: Correcting for Market Failure)Use Figure: Correcting for Market Failure.There is an external cost in the market illustrated in the figure,and the two upward-sloping lines reflect private and social marginal costs.When the government intervenes to correct for the external cost,the output will _____ from _____ to _____.

Nikos and Camila are working on a team project for a course.They will receive the same grade for the project.They have done a great job,but they have not kept track of their bibliography sources very well,although they both have all of the information.Camila knows that Nikos will eventually do the bibliography since Nikos does not like to turn in incomplete work.As a result:

The free-rider problem is a direct result of:

For nonrival goods like pay-per-view television programs,the private market will lead to _____ from a social perspective.

Stephanie stops at a gas station to fill up the tank of her car.The unleaded gasoline in her tank is BEST described as a(n):

Common resource goods are similar to:

Bluefin tuna travel in schools throughout the world's oceans.Fishing boats from many nations harvest bluefin tuna as the schools migrate through their national waters.The schools of bluefin tuna are BEST described as a(n):

A(n)_____ is nonexcludable and nonrival in consumption.

If the use of a common resource is determined in the private market,the resource will be _____ since the marginal social benefit will be equal to the marginal private cost of production,which is _____ than the marginal social cost.

Use the following to answer question: Figure: Market Failure -(Figure: Market Failure)Use Figure: Market Failure.Suppose that the supply curve represents the marginal cost of providing streetlights in a neighborhood where only two people,Ann and Joe,reside.The demand curve represents the marginal benefit that Ann receives from the streetlights.Suppose that Joe's marginal benefit from the streetlights is a constant amount equal to the vertical distance A-C.How much is Ann willing to pay for F streetlights?

Use the following to answer question: Figure: Market Failure -(Figure: Market Failure)Use Figure: Market Failure.In the figure,if production in this competitive market is at quantity G:

A market produces too much of a good when the price of the good 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 fourth security guard is _____,and the marginal social benefit is _____.

A software program is similar to an apple in that it is _____,but it is also similar to public safety in that it is _____.

The BEST example of a public good is: