Question 1

Goods that are rival in consumption but not excludable would be considered

Accepted Answer

A)  club goods. 
B)  common resources. 
C)  public goods. 
D)  private goods. 
A)  club goods. 
B)  common resources. 
C)  public goods. 
D)  private goods.

Question 2

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 $120 per day and the 4 store owners have agreed to split the costs of hiring guards equally.How many guards would the owner of Store A prefer to hire?

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
A)  0 
B)  1 
C)  2 
D)  3

Question 3

Figure 11-1
  
-Refer to Figure 11-1.A ham sandwich is an example of the type of good represented by Box

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  D. 
A)  A. 
B)  B. 
C)  C. 
D)  D.

Question 4

In some cases the government can make everyone better off by raising taxes to pay for certain goods that the market fails to provide.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  a wristwatch 
B)  fire protection in a small town 
C)  fish in the ocean 
D)  efforts to fight poverty 
A)  a wristwatch 
B)  fire protection in a small town 
C)  fish in the ocean 
D)  efforts to fight poverty

Question 6

Goods that are not excludable are usually

Accepted Answer

A)  higher priced than excludable goods. 
B)  higher priced than rival goods. 
C)  in short supply. 
D)  free of charge. 
A)  higher priced than excludable goods. 
B)  higher priced than rival goods. 
C)  in short supply. 
D)  free of charge.

Question 7

Figure 11-1
  
-Refer to Figure 11-1.The box labeled B represents what type of good?

Accepted Answer

Box B repr

Question 8

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Accepted Answer

A)  subsidizing basic research 
B)  building lighthouses 
C)  toll charges on congested roads 
D)  cost-benefit analysis 
A)  subsidizing basic research 
B)  building lighthouses 
C)  toll charges on congested roads 
D)  cost-benefit analysis

Question 9

Which of the following is most likely to face extinction?

Accepted Answer

A)  dogs living as pets in households 
B)  dairy cows living on farms and producing milk 
C)  bald eagles living in zoos 
D)  tigers living in the wild 
A)  dogs living as pets in households 
B)  dairy cows living on farms and producing milk 
C)  bald eagles living in zoos 
D)  tigers living in the wild

Question 10

Both public goods and common resources are

Accepted Answer

A)  rival in consumption. 
B)  nonrival in consumption. 
C)  excludable. 
D)  nonexcludable. 
A)  rival in consumption. 
B)  nonrival in consumption. 
C)  excludable. 
D)  nonexcludable.

Question 11

Pollution is a

Accepted Answer

A)  problem that is entirely unrelated to the parable called the Tragedy of the Commons. 
B)  problem that cannot be remedied with regulations or corrective taxes. 
C)  negative externality that can be viewed as a public-goods problem. 
D)  negative externality that can be viewed as a common-resource problem. 
A)  problem that is entirely unrelated to the parable called the Tragedy of the Commons. 
B)  problem that cannot be remedied with regulations or corrective taxes. 
C)  negative externality that can be viewed as a public-goods problem. 
D)  negative externality that can be viewed as a common-resource problem.

Question 12

Concerts in arenas are not excludable because it is virtually impossible to prevent someone from seeing the show.

Accepted Answer

A) True 
 B)False

Question 13

If we can conclude that human life has a finite value,cost-benefit analysis can lead to solutions in which human life is worth less than the cost of a potential project.

Accepted Answer

A) True 
 B)False

Question 14

When a free-rider problem exists,

Accepted Answer

A)  the market will devote too few resources to the production of the good. 
B)  the cost of the good will always be more than the benefit of the good. 
C)  the good will not be produced. 
D)  entrepreneurs will eventually find a way to make free-riders pay their share. 
A)  the market will devote too few resources to the production of the good. 
B)  the cost of the good will always be more than the benefit of the good. 
C)  the good will not be produced. 
D)  entrepreneurs will eventually find a way to make free-riders pay their share.

Question 15

The commercial value of ivory is a threat to the elephant,but the commercial value of beef is a guardian of the cow.This is because

Accepted Answer

A)  the cow is raised in developed countries,while the elephant lives primarily in less-developed countries. 
B)  cows are private goods,while elephants tend to roam freely without owners. 
C)  cows and elephants are public goods,but ivory is nonrival. 
D)  ivory is nonrival and nonexclusive,but beef is rival and exclusive. 
A)  the cow is raised in developed countries,while the elephant lives primarily in less-developed countries. 
B)  cows are private goods,while elephants tend to roam freely without owners. 
C)  cows and elephants are public goods,but ivory is nonrival. 
D)  ivory is nonrival and nonexclusive,but beef is rival and exclusive.

Question 16

Common resources and public goods have in common that they are not excludable and they are not rival in consumption.

Accepted Answer

A) True 
 B)False

Question 17

Table 11-3
This table describes the defense demands for three equal sized groups of people in Nirvanaville.The second,third,and fourth column shows the quantity that a group will demand for a given price (the first column).
  
-Refer to Table 11-3.What is the value of the 13th unit of national defense in Nirvananville?

Accepted Answer

A)  $8 
B)  $14 
C)  $18 
D)  $24 
A)  $8 
B)  $14 
C)  $18 
D)  $24

Question 18

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Accepted Answer

A)  Both the American drivers and the Soviet shoppers are consuming products at prices that do not represent the full costs of the products. 
B)  Both the American drivers and the Soviet shoppers can purchase as much as they want at the market price. 
C)  Both the American drivers and the Soviet shoppers could avoid waiting if the prices were lowered. 
D)  American drivers and Soviet shoppers have nothing in common. 
A)  Both the American drivers and the Soviet shoppers are consuming products at prices that do not represent the full costs of the products. 
B)  Both the American drivers and the Soviet shoppers can purchase as much as they want at the market price. 
C)  Both the American drivers and the Soviet shoppers could avoid waiting if the prices were lowered. 
D)  American drivers and Soviet shoppers have nothing in common.

Question 19

Suppose a human life is worth $10 million.Installing a better lighting system in the city park would reduce the risk of someone being murdered there from 2.3 to 1.8 percent over the life of the system.The city should install the new lighting system if its cost does not exceed

Accepted Answer

A)  $50,000. 
B)  $180,000. 
C)  $230,000. 
D)  $500,000. 
A)  $50,000. 
B)  $180,000. 
C)  $230,000. 
D)  $500,000.

Question 20

Which of the following is not a common resource?

Accepted Answer

A)  congested roads 
B)  clean water 
C)  wild gorillas 
D)  a fireworks display 
A)  congested roads 
B)  clean water 
C)  wild gorillas 
D)  a fireworks display

Exam 11: Public Goods and Common Resources

Goods that are rival in consumption but not excludable would be considered

Figure 11-1 -Refer to Figure 11-1.A ham sandwich is an example of the type of good represented by Box

In some cases the government can make everyone better off by raising taxes to pay for certain goods that the market fails to provide.

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

Goods that are not excludable are usually

Figure 11-1 -Refer to Figure 11-1.The box labeled B represents what type of good?

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Which of the following is most likely to face extinction?

Both public goods and common resources are

Pollution is a

Concerts in arenas are not excludable because it is virtually impossible to prevent someone from seeing the show.

If we can conclude that human life has a finite value,cost-benefit analysis can lead to solutions in which human life is worth less than the cost of a potential project.

When a free-rider problem exists,

The commercial value of ivory is a threat to the elephant,but the commercial value of beef is a guardian of the cow.This is because

Common resources and public goods have in common that they are not excludable and they are not rival in consumption.

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Suppose a human life is worth $10 million.Installing a better lighting system in the city park would reduce the risk of someone being murdered there from 2.3 to 1.8 percent over the life of the system.The city should install the new lighting system if its cost does not exceed

Which of the following is not a common resource?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply,demand,and Government Policies

Consumers,producers,and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Market for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving,investment,and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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