Exam 11: Public Goods and Common Resources

Table 11-5 A small strip mall contains four retail stores,and crime has recently been on the increase in the neighborhood of the strip mall.The owners of the four stores - Stores A,B,C,and D - are considering contributing to a pool of money that will be used to hire up to 4 security guards.The table represents their willingness to pay,that is,the maximum amount that each store owner is willing to contribute,per day,to hire each security guard. -Refer to Table 11-5.Suppose the cost to hire each guard is $100 per day and the 4 store owners have agreed to split the costs of hiring guards equally.Which store owner(s)would be opposed to hiring any guards?

Which of the following goods is rival in consumption and excludable?

The idea that "externalities arise because something of value has no price attached to it" is associated with

National defense is a classic example of a public good because

You and your friends watch a movie in your bedroom.For you and your friends,the enjoyment that you get from watching the movie is not rival in consumption.

Which of the following represents a potential solution to the problem of environmental pollution?

Figure 11-1 -Refer to Figure 11-1.Which of the following statements is correct?

A good that is excludable but not rival is known as a club good.

Which of the following goods is rival and excludable?

One solution to the "Tragedy of the Commons" is to turn the common resource into a private good.

Which of the following is not an advantage to congestion charges for motorists who wish to drive on busy streets?

Although national defense is currently a public good,economists who advocate small government generally agree that the U.S.should privatize national defense to increase the efficiency of the good.

Are public goods excludable? Are they rival in consumption?

Four roommates share an off-campus house and equally share the cost of rent.Everyone says that she values a clean house,yet the house is usually dirty.To an economist,a clean house in this case represents

Table 11-1 Consider the town of Anywhere with only three residents,Mary,Bill,and Tricia.The three residents are trying to determine how large,in acres,they should build the public park.The table below shows each resident's willingness to pay for each acre of the park. -Refer to Table 11-1.Suppose the cost to build the park is $33 per acre and that the residents have agreed to split the cost of building the park equally.To maximize his own surplus,how many acres would Bill like Anywhere to build?

Goods that are excludable include both

Advocates of antipoverty programs claim that fighting poverty

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

A congested side street in your neighborhood is

A common theme among examples of market failure is