Question 1

When a good is rival in consumption:

Accepted Answer

A)  people can be excluded from using the good. 
B)  one person's use of the good prevents another's ability to use it. 
C)  no more than one person can use the good at the same time. 
D)  people can be prevented from using the good. 
A)  people can be excluded from using the good. 
B)  one person's use of the good prevents another's ability to use it. 
C)  no more than one person can use the good at the same time. 
D)  people can be prevented from using the good. B

Question 2

An example of a common resource would be:

Accepted Answer

A)  a street light. 
B)  the environment. 
C)  clothing. 
D)  cable TV. 
A)  a street light. 
B)  the environment. 
C)  clothing. 
D)  cable TV. B

Question 3

An excludable good is:

Accepted Answer

A)  one that is excluded from the common basket of goods consumed by households. 
B)  one that producers will exclude from production. 
C)  one where people can be prevented from using the good. 
D)  not necessary to consume, that is a luxury. 
A)  one that is excluded from the common basket of goods consumed by households. 
B)  one that producers will exclude from production. 
C)  one where people can be prevented from using the good. 
D)  not necessary to consume, that is a luxury. C

Question 4

Both public goods and common resources are:

Accepted Answer

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

Question 5

Use the following to answer questions: Table: GoodsClassification
Shirt
Rainfall
Smog Reduction
PlayStation Controller
Cable TV
National Defense
Baltimore Aquarium
Chewing Gum
Your Economics Textbook
Free Public Library
Your Teacher's Open Office Hours
Pen
Free Public Bus Service
-Table: Area Classification $$\begin{array}{l}
\begin{array} { | l | l | l } 
\hline & \text { Excludable } & \text { Nonexcludable } \
\hline \text { Rival } & \text { Private goods } & \text { Common resources } \
\hline \text { Nonrival } & \text { Nonrival public goods } & \text { Public goods } \
\hline
\end{array}\
\begin{array} { | l | l | } 
\hline \text { a. } & \text { hamburgers } \
\hline \text { b. } & \text { fish in the ocean } \
\hline \text { c. } & \text { national defense } \
\hline \text { d. } & \text { cable TV } \
\hline \text { e. } & \text { clothing } \
\hline \text { f. } & \text { the environment } \
\hline \text { g. } & \text { cell phone service } \
\hline \text { h. } & \text { lighthouses } \
\hline \text { i. } & \text { ice cream cones } \
\hline \text { j. } & \text { a tornado warning siren } \
\hline
\end{array}
\end{array}$$ 
Refer to the table. Place each of the following in the correct location according to the table.

Accepted Answer

The answer of Use the following to answer questions: Table:...

Question 6

During the Middle Ages, many villages had areas reserved for families to take their cows or sheep to graze. All families were welcome to use this land without charge. This situation likely led to a(n):

Accepted Answer

A)  tragedy of the commons. 
B)  finite of proportions. 
C)  marketable public good. 
D)  exhaustive equilibrium. 
A)  tragedy of the commons. 
B)  finite of proportions. 
C)  marketable public good. 
D)  exhaustive equilibrium.

Question 7

A consumer would likely choose to buy asteroid protection for $100 over jeans for $100.

Accepted Answer

A) True 
 B)False

Question 8

Hamburgers are an example of a:

Accepted Answer

A)  private good. 
B)  public good. 
C)  common resource. 
D)  nonrival private good. 
A)  private good. 
B)  public good. 
C)  common resource. 
D)  nonrival private good.

Question 9

It is estimated that by 2048, just 20% of the world's major seafood stock will remain.

Accepted Answer

A) True 
 B)False

Question 10

In which of the case below is there the potential for a free-rider problem?

Accepted Answer

A)  half-off sales at department stores 
B)  voluntary payments for a smog reduction program 
C)  group projects where all members have clearly assigned tasks and are responsible for presenting their work 
D)  cable Internet service 
A)  half-off sales at department stores 
B)  voluntary payments for a smog reduction program 
C)  group projects where all members have clearly assigned tasks and are responsible for presenting their work 
D)  cable Internet service

Question 11

Asteroid deflection is an example of a:

Accepted Answer

A)  private good. 
B)  public good. 
C)  common resource 
D)  nonrival private good. 
A)  private good. 
B)  public good. 
C)  common resource 
D)  nonrival private good.

Question 12

Creating property rights for southern bluefin tuna is:

Accepted Answer

A)  easy because southern bluefin tuna don't travel far from shore. 
B)  easy because southern bluefin tuna is a common resource. 
C)  difficult because southern bluefin tuna travel throughout the Pacific Ocean. 
D)  difficult because only one country fishes for southern bluefin tuna. 
A)  easy because southern bluefin tuna don't travel far from shore. 
B)  easy because southern bluefin tuna is a common resource. 
C)  difficult because southern bluefin tuna travel throughout the Pacific Ocean. 
D)  difficult because only one country fishes for southern bluefin tuna.

Question 13

If a consumer could pay $100 for a new pair of jeans or $100 toward asteroid deflection, what would that consumer likely choose?
I. purchase the jeans
II. purchase asteroid deflection
III. purchase both the jeans and asteroid deflection

Accepted Answer

A)  I only 
B)  II only 
C)  III only 
D)  I and II only 
A)  I only 
B)  II only 
C)  III only 
D)  I and II only

Question 14

The tragedy of the commons is that common resources tend to be overproduced by the government.

Accepted Answer

A) True 
 B)False

Question 15

Many people who own dogs do not pick up after them in public places. This is an example of:

Accepted Answer

A)  free riders. 
B)  the tragedy of the commons. 
C)  a public good. 
D)  forced riders. 
A)  free riders. 
B)  the tragedy of the commons. 
C)  a public good. 
D)  forced riders.

Question 16

Private goods are:

Accepted Answer

A)  excludable and rival. 
B)  excludable and nonrival. 
C)  nonexcludable and rival. 
D)  nonexcludable and nonrival. 
A)  excludable and rival. 
B)  excludable and nonrival. 
C)  nonexcludable and rival. 
D)  nonexcludable and nonrival.

Question 17

A public good is a good produced in the public sector.

Accepted Answer

A) True 
 B)False

Question 18

Explain whether there is a free-rider problem with mosquito control and town parks. If so, how can it be addressed?

Accepted Answer

Both mosquito control and a town park ar

Question 19

The government can increase economic efficiency by using tax revenue to produce public goods.

Accepted Answer

A) True 
 B)False

Question 20

Asteroid protection is an example of a private good.

Accepted Answer

A) True 
 B)False

Exam 19: Public Goods and the Tragedy of the Commons

When a good is rival in consumption:

An example of a common resource would be:

An excludable good is:

Both public goods and common resources are:

During the Middle Ages, many villages had areas reserved for families to take their cows or sheep to graze. All families were welcome to use this land without charge. This situation likely led to a(n):

A consumer would likely choose to buy asteroid protection for $100 over jeans for $100.

Hamburgers are an example of a:

It is estimated that by 2048, just 20% of the world's major seafood stock will remain.

In which of the case below is there the potential for a free-rider problem?

Asteroid deflection is an example of a:

Creating property rights for southern bluefin tuna is:

If a consumer could pay $100 for a new pair of jeans or $100 toward asteroid deflection, what would that consumer likely choose? I. purchase the jeans II. purchase asteroid deflection III. purchase both the jeans and asteroid deflection

The tragedy of the commons is that common resources tend to be overproduced by the government.

Many people who own dogs do not pick up after them in public places. This is an example of:

Private goods are:

A public good is a good produced in the public sector.

Explain whether there is a free-rider problem with mosquito control and town parks. If so, how can it be addressed?

The government can increase economic efficiency by using tax revenue to produce public goods.

Asteroid protection is an example of a private good.

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