Exam 19: Public Goods and the Tragedy of the Commons

HBO shows are not considered club goods.

A solution to the tragedy of the commons is to convert common resources to private goods.

In 2008, Google lobbied the Federal Communications Commission to open up some of the available wireless spectrum to Google so that they may offer a free national wireless Internet service. Given that Internet subscribers currently pay anywhere from $10 to $100 per month for service, explain why Google would be willing to give such a valuable service away for free.

If a consumer buys a new pair of jeans for $100, he/she has exclusive use of that pair of jeans; hence, it is a private good.

Common resources are:

Since people get to consume public goods regardless of whether they paid for them, the market will likely not produce enough public goods.

Explain how a free rider may arise on a public good and describe the consequences of the free rider problem.

Which of the following is a list of private goods only?

A fireworks display is an example of a good that is excludable.

The tragedy of the commons occurs when a good is:

Though markets can provide goods that are excludable but nonrival, they do so at the price of:

Why is national defense a public good? I. It is expensive to produce. II. People who don't pay for national defense still benefit from having it. III. One person's benefit from national defense doesn't reduce anyone else's benefit from it. IV. It is provided by the government.

Jeans are an example of a:

Mosquito control is an example of a good that:

It is difficult to get people to pay for public goods voluntarily because these goods are:

Use the following to answer questions: Table: Types of Goods Excludable Nonexcludable Rival 1 2 Nonrival 3 4 -(Table: Types of Goods) Refer to the table. Which of the following statements is TRUE? I. Section 1 may contain fruit, chicken, and underwear. II. Section 2 may contain fish in the ocean, public roads, and public hunting grounds. III. Section 3 may contain Wi-Fi, cable TV, and digital music. IV. Section 4 may contain asteroid deflection, national defense, and radio.

Suppose all students received the average grade on exams, regardless of how well each person did. What is the most likely grade each student will get (assume a very large class)?

During the Holy Roman Empire, Germany's Rhine River was a major trade artery (and provided tax revenue). The numerous castles along the Rhine were toll stations, with most merchants having to travel sizable lengths of the river to arrive at their destination. Although the Emperors closely guarded the right to charge a toll, local nobility would occasionally break the law and build a castle along the Rhine to charge a toll (hence the origin of the phrase, "robber baron"). When possible, such "robber castles" were destroyed to prevent the tragedy of the commons. What is the commons resource here?

Tuna are not public goods since they are nonrival but excludable.

Which of the following statements is TRUE?