Exam 17: Public Goods and Common Resources

Use the following to answer question: Figure: Demand and Marginal Revenue -(Figure: Demand and Marginal Revenue)Use Figure: Demand and Marginal Revenue.The figure refers to a software upgrade.The producer incurred fixed costs of $10 million to produce the upgrade;the marginal cost of allowing consumers to download the upgrade is zero.What is the deadweight loss associated with the profit-maximizing price and quantity of the upgrade?

(Multiple Choice)

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Question 101

Use the following to answer question: Figure: An Individual's Marginal Benefit from a Public Good -(Figure: An Individual's Marginal Benefit from a Public Good)Use Figure: An Individual's Marginal Benefit from a Public Good.Assume that two individuals will share consumption of a public good;each individual has the marginal benefit curve shown in the figure.If the marginal cost of the good is $8,how many units of the public good will be provided by the private market?

(Multiple Choice)

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Question 102

If an individual does not have to pay to use a common resource,that individual will continue to use a common resource until his or her:

(Multiple Choice)

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Question 103

Pay-per-view movies are an example of a common resource.

(True/False)

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Question 104

A public good is a good:

(Multiple Choice)

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Question 105

The efficient price for a good that is nonrival in consumption is necessarily greater than zero.

(True/False)

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Question 106

The tendency of people or firms to consume a public good without paying for it is called the free-_____ problem.

(Multiple Choice)

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Question 107

Use the following to answer question: -(Table: Marginal Benefit from Additional Streetlights)Use Table: Marginal Benefit from Additional Streetlights.Suppose that the marginal cost of installing a streetlight is $6.What is the maximum that Art would be willing to pay to have one streetlight installed in the neighborhood?

(Multiple Choice)

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Question 108

Any road without a toll can be thought of as a common resource since it is nonexcludable and rival in consumption.

(True/False)

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Question 109

Use the following to answer question: Figure: An Individual's Marginal Benefit from a Public Good -(Figure: An Individual's Marginal Benefit from a Public Good)Use Figure: An Individual's Marginal Benefit from a Public Good.Assume that two individuals will share consumption of a public good;each individual has the marginal benefit curve shown in the figure.If the marginal cost of the good is $24,how many units of the public good will be provided by the private market?

(Multiple Choice)

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Question 110

Use the following to answer question: -(Table: Marginal Benefit,Cost,and Consumer Surplus)Use Table: Marginal Benefit,Cost,and Consumer Surplus.The table shows six consumers' willingness to pay for one iTunes download.If the marginal social cost is constant at ___,then _ consumers will purchase this good,and consumer surplus is ___.

(Multiple Choice)

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Question 111

National defense and e-books are similar in that both are ___,but they differ in that national defense is _,while e-books are ___.

(Multiple Choice)

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Question 112

Pharmaceutical companies typically face very high fixed costs when developing new drugs.The marginal cost of producing a drug after development is very low.When these companies set price and output to maximize profit,patients pay a _ price for _ amounts of the drug than are socially optimal.

(Multiple Choice)

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Question 113

Use the following to answer question: -(Table: Street Cleanings)Use Table: Street Cleanings.Increasing the number of street cleanings per month from _____ would yield a marginal social benefit (for Peter and Wendy together)equal to $12.

(Multiple Choice)

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Question 114

A good is excludable if nonpayers can be prevented from consuming it.

(True/False)

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Question 115

On hot summer days,beach parking lots are usually full by early morning,even though one must pay to park there.Parking at such lots is _ in consumption and _.

(Multiple Choice)

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Question 116

The BEST example of an artificially scarce good is:

(Multiple Choice)

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Question 117

Public goods are NOT sold in efficient quantities in the private marketplace because:

(Multiple Choice)

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Question 118

A key feature of a public good is:

(Multiple Choice)

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Question 119

When the allocation of resources in a free market environment is such that a different allocation would increase society's welfare,economists say:

(Multiple Choice)

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Question 120

Showing 101 - 120 of 208

If an individual does not have to pay to use a common resource,that individual will continue to use a common resource until his or her:

Pay-per-view movies are an example of a common resource.

A public good is a good:

The efficient price for a good that is nonrival in consumption is necessarily greater than zero.

The tendency of people or firms to consume a public good without paying for it is called the free-_____ problem.

Any road without a toll can be thought of as a common resource since it is nonexcludable and rival in consumption.

National defense and e-books are similar in that both are ___,but they differ in that national defense is _,while e-books are ___.

Pharmaceutical companies typically face very high fixed costs when developing new drugs.The marginal cost of producing a drug after development is very low.When these companies set price and output to maximize profit,patients pay a _ price for _ amounts of the drug than are socially optimal.

Use the following to answer question: -(Table: Street Cleanings)Use Table: Street Cleanings.Increasing the number of street cleanings per month from _____ would yield a marginal social benefit (for Peter and Wendy together)equal to $12.

A good is excludable if nonpayers can be prevented from consuming it.

On hot summer days,beach parking lots are usually full by early morning,even though one must pay to park there.Parking at such lots is _ in consumption and _.

The BEST example of an artificially scarce good is:

Public goods are NOT sold in efficient quantities in the private marketplace because:

A key feature of a public good is:

When the allocation of resources in a free market environment is such that a different allocation would increase society's welfare,economists say:

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

If an individual does not have to pay to use a common resource,that individual will continue to use a common resource until his or her:

Pay-per-view movies are an example of a common resource.

A public good is a good:

The efficient price for a good that is nonrival in consumption is necessarily greater than zero.

The tendency of people or firms to consume a public good without paying for it is called the free-_____ problem.

Any road without a toll can be thought of as a common resource since it is nonexcludable and rival in consumption.

National defense and e-books are similar in that both are _____,but they differ in that national defense is _____,while e-books are _____.

Use the following to answer question: -(Table: Street Cleanings)Use Table: Street Cleanings.Increasing the number of street cleanings per month from _____ would yield a marginal social benefit (for Peter and Wendy together)equal to $12.

A good is excludable if nonpayers can be prevented from consuming it.

On hot summer days,beach parking lots are usually full by early morning,even though one must pay to park there.Parking at such lots is _____ in consumption and _____.

The BEST example of an artificially scarce good is:

Public goods are NOT sold in efficient quantities in the private marketplace because:

A key feature of a public good is:

When the allocation of resources in a free market environment is such that a different allocation would increase society's welfare,economists say:

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

National defense and e-books are similar in that both are ___,but they differ in that national defense is _,while e-books are ___.

On hot summer days,beach parking lots are usually full by early morning,even though one must pay to park there.Parking at such lots is _ in consumption and _.