Exam 11: Public Goods and Common Resources

Voters typically have information only about issues that have a perceptible effect on their wellbeing and tend not to have information about other issues. Behaviour such as this is known as

One way to overcome the tragedy of the commons is to

-The table above shows the marginal social benefit of fishing in the Mediterranean Sea. The marginal private cost of operating a fishing boat is the same for all producers; $300 per hour. The marginal social cost is twice the marginal private cost. With no government intervention, the market is

Which of the following goods is best described as nonexcludable?

To hunters, deer in the woods are an example of a

Which of the following can bring about an efficient level of public goods being provided by the government?

The marginal benefit of a public good is the

Why are private firms unable to produce public goods?

An AFL football game played in a completely full stadium is NOT a public good because it is

Which of the following is NOT a potential solution to the tragedy of the commons?

-Paul and Paula are the only members of society. The table above gives their marginal benefits from missile gunboats, a public good. Suppose the marginal cost of a missile gunboat is $8 million. What is the efficient quantity of missile gunboats?

Which of the following goods is excludable and nonrival?

The efficient quantity of a public good is the quantity at which marginal benefit is

The fact that Victoria's consumption of national defence does not preclude Tasmania from consuming the same national defence is an example of

To find the economy's marginal benefit curve of a public good, we

We determine the economy's marginal benefit curve for a public good or service by

To determine the efficient quantity of a public good to supply,

For a common resource, it is the case that

-Paul and Paula are the only members of society. The table above gives their marginal benefits from missile gunboats, a public good. Determine the marginal benefit to society of the second missile gunboat.

Suppose the marginal cost of the fourth unit of a public good is $20. If Mark and Judy are the only members of society, and they are willing to pay $10 and $11, respectively, for the fourth unit of the good, then the efficient quantity is