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 efficient level of output for the upgrade?

(Multiple Choice)

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Question 161

A good is MOST likely to be artificially scarce if:

(Multiple Choice)

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Question 162

Since the public safety that a police force provides is _ in consumption,the efficient price _.

(Multiple Choice)

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Question 163

Most neighborhood streets are illuminated at night by streetlights.The streetlights are ___ and _.Therefore,they are likely to be ___ by the competitive market.

(Multiple Choice)

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Question 164

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 165

DeVonda owns a music store.One night,vandals broke her store's front window.DeVonda called the police,and the police investigated the crime.The police services that DeVonda used are BEST described as a(n):

(Multiple Choice)

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Question 166

A good that is nonexcludable but rival in consumption is a _____ good.

(Multiple Choice)

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Question 167

Use the following to answer question: -(Table: Total Cost and Total Individual Benefit)Use Table: Total Cost and Total Individual Benefit.If there are 1,000 residents and they all have the same total individual benefit,as shown in the table,what is the total social benefit of three animal control officers?

(Multiple Choice)

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Question 168

(Scenario: Alexander and Vanessa)Use Scenario: Alexander and Vanessa.If Alexander and Vanessa are the only two individuals in a society,which equation CORRECTLY represents the marginal social benefit (MSB)of scientific research? Scenario: Alexander and Vanessa Alexander and Vanessa benefit from scientific research.Alexander's marginal private benefit from such research is given by the equation MPB = 200 - Q,where Q refers to the amount of research undertaken and MPB captures the marginal private benefit Alexander gets from different marginal quantities.Meanwhile,Vanessa's marginal private benefit from such research is given by the equation MPB = 100 - Q.The marginal social cost of such research is constant at $100.

(Multiple Choice)

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Question 169

An artificially scarce good is a good or service for which exclusion is _ and that is _ in consumption.

(Multiple Choice)

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Question 170

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 G streetlights?

(Multiple Choice)

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Question 171

Public goods should be produced up to the point at which the marginal cost of production equals:

(Multiple Choice)

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Question 172

Although most citizens have access to police protection,they also take measures,such as putting locks on their doors,to protect themselves.For most citizens,police protection is a(n)_ good,while self-protection is a(n)_ good.

(Multiple Choice)

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Question 173

In London,any motorist entering a particular area in the city center during certain specified times must pay a congestion fee equal to £11.50 per day,with fines for noncompliance rising to as high as £130.The congestion fee is:

(Multiple Choice)

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Question 174

Common resources tend to be overused because:

(Multiple Choice)

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Question 175

A common resource is _____ in consumption.

(Multiple Choice)

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Question 176

To maximize society's welfare,the government should produce a public good up to the point at which the marginal social benefit _____ the marginal social cost.

(Multiple Choice)

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Question 177

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 third security guard is _,and the marginal social benefit is _.

(Multiple Choice)

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Question 178

The free-rider problem refers to:

(Multiple Choice)

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Question 179

For a public good,nonpayers _____ excluded from obtaining the benefits of the good.

(Multiple Choice)

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Question 180

Showing 161 - 180 of 208

A good is MOST likely to be artificially scarce if:

Since the public safety that a police force provides is _ in consumption,the efficient price _.

Most neighborhood streets are illuminated at night by streetlights.The streetlights are ___ and _.Therefore,they are likely to be ___ by the competitive market.

DeVonda owns a music store.One night,vandals broke her store's front window.DeVonda called the police,and the police investigated the crime.The police services that DeVonda used are BEST described as a(n):

A good that is nonexcludable but rival in consumption is a _____ good.

An artificially scarce good is a good or service for which exclusion is _ and that is _ in consumption.

Public goods should be produced up to the point at which the marginal cost of production equals:

Although most citizens have access to police protection,they also take measures,such as putting locks on their doors,to protect themselves.For most citizens,police protection is a(n)_ good,while self-protection is a(n)_ good.

In London,any motorist entering a particular area in the city center during certain specified times must pay a congestion fee equal to £11.50 per day,with fines for noncompliance rising to as high as £130.The congestion fee is:

Common resources tend to be overused because:

A common resource is _____ in consumption.

To maximize society's welfare,the government should produce a public good up to the point at which the marginal social benefit _____ the marginal social cost.

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 third security guard is _,and the marginal social benefit is _.

The free-rider problem refers to:

For a public good,nonpayers _____ excluded from obtaining the benefits of the good.

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

A good is MOST likely to be artificially scarce if:

Since the public safety that a police force provides is _____ in consumption,the efficient price _____.

Most neighborhood streets are illuminated at night by streetlights.The streetlights are _____ and _____.Therefore,they are likely to be _____ by the competitive market.

DeVonda owns a music store.One night,vandals broke her store's front window.DeVonda called the police,and the police investigated the crime.The police services that DeVonda used are BEST described as a(n):

A good that is nonexcludable but rival in consumption is a _____ good.

An artificially scarce good is a good or service for which exclusion is _____ and that is _____ in consumption.

Public goods should be produced up to the point at which the marginal cost of production equals:

Although most citizens have access to police protection,they also take measures,such as putting locks on their doors,to protect themselves.For most citizens,police protection is a(n)_____ good,while self-protection is a(n)_____ good.

In London,any motorist entering a particular area in the city center during certain specified times must pay a congestion fee equal to £11.50 per day,with fines for noncompliance rising to as high as £130.The congestion fee is:

Common resources tend to be overused because:

A common resource is _____ in consumption.

To maximize society's welfare,the government should produce a public good up to the point at which the marginal social benefit _____ the marginal social cost.

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 third security guard is _____,and the marginal social benefit is _____.

The free-rider problem refers to:

For a public good,nonpayers _____ excluded from obtaining the benefits of the good.

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

Since the public safety that a police force provides is _ in consumption,the efficient price _.

Most neighborhood streets are illuminated at night by streetlights.The streetlights are ___ and _.Therefore,they are likely to be ___ by the competitive market.

An artificially scarce good is a good or service for which exclusion is _ and that is _ in consumption.

Although most citizens have access to police protection,they also take measures,such as putting locks on their doors,to protect themselves.For most citizens,police protection is a(n)_ good,while self-protection is a(n)_ good.

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 third security guard is _,and the marginal social benefit is _.