Exam 14: Common Property and Public Goods

Computer software is an example of a good that is

Suppose that when one person consumes a good,it is possible to provide it to others at no additional cost.Such a good is called

A nonexcludable good,once produced,can be made available to others at no additional cost.

Whether or not people have identical tastes,the net value that the marginal user receives from a common property is

Common Property II 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 II.If the common property is privately owned,the owner earns revenue equal to

One problem with a Clarke tax is that although it may not cover the complete cost of a public good,it will never generate more than the cost of the good.

Free riding would be an appropriate description of which of the following behaviors?

Common Property II 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 II.Suppose the common property becomes privately owned.If the owner behaves competitively,what entrance fee would he charge for the right to use the property?

When people have identical tastes,social gain can be created from a common property by imposing a Pigovian tax on entrants.

Consider the following:

Public goods can frequently be provided by private action when the resulting benefits are widespread.

What is one problem with using a Clarke tax to finance government provision of a public good?

When people have identical tastes,nobody has any incentive to maintain or improve a property that is commonly owned.

When people have identical tastes,an increase in the demand for a common property's use will increase the social gain it creates.