Exam 17: Public Goods and Common Resources

Use the figure below to answer the following questions. Figure 17.2.1 -Refer to Figure 17.2.1.Curve MB_A is Andrew's marginal benefit curve for a public good and curve MB_B is Betty's marginal benefit curve for the same public good.If Andrew and Betty are the only two consumers in the economy,which point would be on the economy's marginal social benefit curve?

Governments provide public goods such as national defence because

Minimum differentiation among the political parties suggests that

All of the following statements are true except ________.

Competitors who make themselves identical to appeal to the maximum number of voters illustrate the

Free riding can occur if a good is

The absence of incentives to prevent the overuse of a common resource that arises when its users have no incentive to conserve it and use it sustainably is referred to as

When a city street is congested,it is

Suppose Bryan Adams wants to perform a concert in the City Park in Corner Brook Newfoundland.The city officials argue that the only way the concert can be given permission to be performed in the City Park is if it is free of charge.If Bryan Adams agrees to performing free of charge,then the concert is

Private goods are

Which one of the following goods exhibits nonexcludability?

The economy's demand curve for a public good is obtained by summing the individual

For a private good,the economy's marginal social benefit curve is the ________ sum of the individual marginal benefit curves and for a public good,the economy's marginal social benefit curve is the ________ sum of the individual marginal benefit curves.

Which of the following quotations describes a nonexcludable and nonrival good?

Common resources are overused because

According to public choice theory government failure occurs because

Use the table below to answer the following questions. Table 17.2.1 Number of Voters Current Income Income after Proposal A Income after Proposal B Income after Proposal C 25 \ 10,000 \ 15,000 \ 20,000 \ 5,000 25 \ 20,000 \ 25,000 \ 20,000 \ 18,000 25 \ 40,000 \ 45,000 \ 40,000 \ 38,000 25 \ 90,000 \ 75,000 \ 80,000 \ 99,000 -In Table 17.2.1,which of the proposals would be supported by political parties according to the principle of minimum differentiation?

Growing voter income can lead to the growth of the government sector because

Use the figure below to answer the following questions. Figure 17.3.1 -Figure 17.3.1 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.The equilibrium quantity in an unregulated market is

If the marginal social cost of producing a public good is greater than the marginal social benefit,then