Exam 14: Common Property and Public Goods

GA 400 is a state highway that runs through part of Atlanta,GA.In order to travel on one portion of GA 400,drivers are required to pay a toll.It follows that section of GA 400 will exhibit non-rivalry in consumption if

Whether or not people have identical tastes,the marginal entrant is indifferent about using a common property.

When a Clarke tax is used,the revenue collected may or may not cover the cost of providing the public good.

Frequently,a public good can be adequately provided by private action when its benefits are

All economists agree that a public good is one the is nonrivalrous and nonexcludable.

Common Property I The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property. -Refer to Common Property I.Suppose the common property becomes privately owned.The owner behaves competitively and charges people an entrance fee for the right to use the property.In this situation,how are the gains from trade divided between the owner and the users of the property?

Which of the following is the best example of a common property?

Common Property I The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property. -Refer to Common Property I.Suppose the common property becomes privately owned.The owner behaves competitively and charges people an entrance fee for the right to use the property.The fee will be

Which of the following is an example of a good that is excludable and nonrivalrous?

An HBO broadcast over cable television is rival in consumption but non-excludable.

The term "tragedy of the commons" is used to describe

Each user of a common property imposes a negative externality on its other users.

A non-congested toll road is an example of a good that is excludable,but not rivalrous in consumption.

If people have identical tastes,then the economic rent created by a common property is

When a Clarke tax is used to finance a public good,each person's tax equals

In a Clarke tax scheme,the amount of tax that a person pays depends,in part,on his revealed preference for the public good.

Free-riding is a problem associated with

Whether or not people have identical tastes,free entry to a common property leads to a suboptimal outcome.

A common property is

Private markets tend to undersupply nonrivalrous goods because of free riding.