Exam 11: Public Goods and Common Resources

Figure 11-1 -Refer to Figure 11-1.Which of the following items is not an example of the type of good represented by Box D?

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 individual guard is $70 per day.How many guards should be hired to maximize the total surplus of the four store owners?

Goods that are rival in consumption and excludable would be considered

Figure 11-1 -Refer to Figure 11-1.For which two boxes is it the case that externalities arise because something of value has no price attached to it?

The degradation of the environment from litter is a

Mitch hunts deer.His shotgun is

The parable called the Tragedy of the Commons applies to goods such as

Which of the following is not a characteristic of a public good?

An economics professor,upset about the rising cost of textbooks,proposed that his department purchase 50 copies of a statistics book so the students in the statistics class would not have to purchase their own books but rather could borrow a book for the semester and then return it for the next class to use.Which of the following strategies would not prevent a common resource problem with the textbooks?

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 $15 per acre and that the residents have agreed to split the cost of building the park equally.If the residents vote to determine the size of park to build,basing their decision solely on their own willingness to pay (and trying to maximize their own surplus),what is the largest park size for which the majority of residents would vote "yes?"

The town of Isle is on a small island connected to Big City by a single bridge.Most of the residents of Isle work in Big City.As a result,the bridge becomes very congested for 2 hours each day at the typical morning and evening commute times.Which of the following policies considered by the mayor of Isle would likely be most effective in alleviating the congestion?

The Tragedy of the Commons

Figure 11-1 -Refer to Figure 11-1.The more Jane uses good x,the less of that good there is for other people to use.Neither Jane nor anyone else can be prevented from using the good.Good x is an example of the type of good that belongs in

The enclosure movement in England in the 17^th century represented an attempt to transform

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.If the residents decide to build a park with size equal to the number of acres that maximizes total surplus from the park,how much total surplus will Mary receive?

Which of the following statements is not correct?

The failure of markets to adequately protect the environment can viewed either as a problem of

The Tragedy of the Commons occurs because

In a certain city,the government is considering acquiring some land and turning it into a park (without any fences or gates).In an attempt to determine the extent to which residents of the city would value the park,residents are asked to fill out a questionnaire.Which of the following is correct?

In determining whether and how much of a public good to provide,cost-benefits analysts use the same type of price signals for public goods as are readily available for private goods.