Exam 17: Public Goods and Common Resources

Use the figure below to answer the following questions. Figure 17.3.2 -Figure 17.3.2 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.The equilibrium in an unregulated market is

Governments provide public goods such as national defence because

When a city street is not congested,it is

If all voters are well informed about national defence,the quantity of national defence provided by the government will be

Suppose in a country there are only two persons.Person A is willing to pay $50 to have one unit of a public good produced;person B is willing to pay $60 to have one unit of a public good produced and $50 to have two units produced.A point on the country's marginal social benefit curve for this public good is a price of ________ and quantity demanded of ________.

According to ________ theory,governments make choices that result in an ________ provision of public goods.This outcome occurs in ________.

Which one of the following goods is excludable?

To attract a majority of voters,a political party will

Minimum differentiation among the political parties suggests that

According to public choice theory,a voter will tend to be well informed if the issue in question

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

The tragedy of the commons is the absence of incentives to

An individual transferable quota is a production limit that

If a good is a public good,

Setting a production quota does not always achieve the efficient use of a common resource because ________.

Use the figure below to answer the following questions. Figure 17.3.2 -Figure 17.3.2 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.A quota that results in the common resource being used efficiently is set at

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

An example of common resource is

Free riding can occur if a good is

The efficient scale of provision of a public good occurs where