Exam 11: Public Goods and Common Resources

-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. The efficient quantity of fish caught is ________ tonnes.

A good is nonrival if

A good or resource is excludable if

An example of a common resource is

The market price of an individual transferable quota is equal to the

-The figure above shows the marginal cost and marginal benefit of police protection in Queensland. Police protection is a public good. The efficient number of police officers that should be hired by the Queensland government is

A public good is ________ and ________.

-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 fourth missile gunboat.

A good that is both rival and excludable is

-The above figure shows the marginal private cost curve, marginal social cost curve and marginal social benefit curve for blue fin tuna, a common resource. The efficient outcome is

The free-rider problem exists because

A public good

In which of the following cases does the tragedy of the commons occur? i. Cattle grazing on private farms. Ii) Catching lobsters off the coast of Tasmania. Iii) Raising salmon on salmon farms. Iv) Using legal services provided by the courts.

A private good is ________ and ________.

Public goods create a free-rider problem because

A good is rival if

Sue and Mark are the only two members of a community. Sue's marginal benefit from one lighthouse is $2,000 and Mark's marginal benefit is $1,000. If the marginal cost of one lighthouse is $2,500 and if a lighthouse is a public good, then for efficiency the lighthouse should

-The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for blue fin tuna, a common resource. The efficient outcome is

The efficient quantity of a public good can't be produced by private firms because

For which type of good is it necessary to sum individuals' marginal benefit curves vertically in order to obtain the economy's marginal benefit curve?