Exam 11: Public Goods and Common Resources

Both private goods and club goods are

The overuse of a common resource relative to its economically efficient use is called

The Great Lakes are

Figure 11-1 -Refer to Figure 11-1.Once good x is provided,policymakers need to be concerned about how much of it is used.Good x is an example of the type of good represented by Box

Figure 11-1 -Refer to Figure 11-1.In which box - A,B,C,or D - does each of the following types of roads belong? (Consider each type of road separately. ) • an uncongested toll road • an uncongested nontoll road • a congested toll road • a congested nontoll road

Private goods and club goods have in common that they are excludable,but are different in that private goods are rival while club goods are not rival in consumption.

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 $100 per day.How many guards should be hired to maximize the total surplus of the four store owners?

Which of the following is not a way for the government to solve the problem of excessive use of common resources?

For private goods allocated in markets,

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 $75 per day.Then total surplus for the 4 store owners is

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

A toll on a congested road is in essence

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.We might expect that

The Tragedy of the Commons occurs because

Labor is a

In the Tragedy of the Commons,joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Table 11-4 There are four homes along Belmont Circle,which surrounds a small plot of land.The land currently has no trees,and the 4 homeowners -- Adams,Benitez,Chen,and Davis -- are considering the idea of contributing to a pool of money that will be used to plant up to 4 trees.The table represents their willingness to pay,that is,the maximum amount that each homeowner is willing to contribute toward each tree. -Refer to Table 11-4.Suppose the cost to plant each tree is $300.How many trees should be planted to maximize the total surplus of the four homeowners?

Most lighthouses are operated by the government because

Which of the following is not an advantage of road tolls as a way to reduce traffic?

The Tragedy of the Commons can be corrected by