Exam 11: Public Goods and Common Resources

Which of the following would be considered a private good?

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 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?"

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 $90 per day and the 4 store owners have agreed to split the costs of hiring guards equally.Which of the following statements is correct?

A sidewalk runs across Milton's front yard near the street.By law,anyone has the right to use the sidewalk.When Milton shovels the sidewalk after a heavy snow,he is providing a

Figure 11-1 -Refer to Figure 11-1.Cable TV is an example of the type of good represented by Box

Most goods in our economy are allocated in markets,where buyers pay for what they receive and sellers are paid for what they provide.

Which of the following is not a typical solution to the "Tragedy of the Commons?"

One person's use of common resources does not reduce the enjoyment other people receive from the resource.