Question 1

Street lights are an example of a good that is:

Accepted Answer

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

Question 2

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

Accepted Answer

A)  a public beach, soup kitchen meals, public roads 
B)  online video games, a public beach, national defense, a lighthouse 
C)  a public beach, a lighthouse, toll highways, public roads 
D)  national defense, a lighthouse, smog reduction 
A)  a public beach, soup kitchen meals, public roads 
B)  online video games, a public beach, national defense, a lighthouse 
C)  a public beach, a lighthouse, toll highways, public roads 
D)  national defense, a lighthouse, smog reduction

Question 3

Tuna in the ocean is a common resource because:

Accepted Answer

A)  it is difficult to prevent people from fishing in the ocean and every time someone catches tuna there is less tuna for someone else. 
B)  all tuna are identical (i.e., a homogenous good) and sold in competitive markets. 
C)  there is an abundance of tuna and no one fisherman can affect the market equilibrium output. 
D)  None of the answers is correct. 
A)  it is difficult to prevent people from fishing in the ocean and every time someone catches tuna there is less tuna for someone else. 
B)  all tuna are identical (i.e., a homogenous good) and sold in competitive markets. 
C)  there is an abundance of tuna and no one fisherman can affect the market equilibrium output. 
D)  None of the answers is correct.

Question 4

Asteroid deflection would be considered a:

Accepted Answer

A)  public good since it is rival and nonexcludable. 
B)  public good since it is nonrival and nonexcludable. 
C)  private good since it is rival and excludable. 
D)  private good since it is nonrival and excludable. 
A)  public good since it is rival and nonexcludable. 
B)  public good since it is nonrival and nonexcludable. 
C)  private good since it is rival and excludable. 
D)  private good since it is nonrival and excludable.

Question 5

An uneducated grandmother who does not have children living with her but pays for public school education through her property tax is a:

Accepted Answer

A)  free rider. 
B)  nonrider. 
C)  forced rider. 
D)  absent rider. 
A)  free rider. 
B)  nonrider. 
C)  forced rider. 
D)  absent rider.

Question 6

Theoretically, when property rights are difficult to establish, multi-country agreements could help to solve the tragedy of the commons, but it has not been possible to establish any such agreement to date.

Accepted Answer

A) True 
 B)False

Question 7

A college student who must pay fees toward a recreational facility that will be built after he has graduated and moved away is a:

Accepted Answer

A)  free rider. 
B)  nonrider. 
C)  forced rider. 
D)  absent rider. 
A)  free rider. 
B)  nonrider. 
C)  forced rider. 
D)  absent rider.

Question 8

To provide the necessary funding for an asteroid defense shield, the

Accepted Answer

A)  government will have to tax the public. 
B)  government can rely on voluntary contributions. 
C)  market can use debt financing. 
D)  market can create forced riders. 
A)  government will have to tax the public. 
B)  government can rely on voluntary contributions. 
C)  market can use debt financing. 
D)  market can create forced riders.

Question 9

Wealthy industrialist Henry Hawk fears an asteroid hitting Earth and is willing and able to pay $15 billion to develop an asteroid deflection system. Suppose asteroid deflection only costs $10 billion and Hawk makes asteroid deflection a reality. What type of good has Henry Hawk provided?

Accepted Answer

A)  public good 
B)  private good 
C)  nonrival private good 
D)  commons resource 
A)  public good 
B)  private good 
C)  nonrival private good 
D)  commons resource

Question 10

A cell phone is a ______ because it is ______.

Accepted Answer

A)  private good; nonrival and excludable 
B)  private good; rival and excludable 
C)  common good; rival and nonrival 
D)  public good; rival and nonexcludable 
A)  private good; nonrival and excludable 
B)  private good; rival and excludable 
C)  common good; rival and nonrival 
D)  public good; rival and nonexcludable

Question 11

A common resource is:

Accepted Answer

A)  likely to be overutilized. 
B)  a good that, when used by one person, leaves less for everyone else. 
C)  rival but nonexcludable. 
D)  All of the answers are correct. 
A)  likely to be overutilized. 
B)  a good that, when used by one person, leaves less for everyone else. 
C)  rival but nonexcludable. 
D)  All of the answers are correct.

Question 12

Uncongested, nontoll roads are a good example of a:

Accepted Answer

A)  public good. 
B)  common resource. 
C)  private good. 
D)  natural monopoly. 
A)  public good. 
B)  common resource. 
C)  private good. 
D)  natural monopoly.

Question 13

Using a payoff table, illustrate how the tragedy of the commons problem could be likened to a prisoner's dilemma situation. Use a two-agent scenario and apply it to a fishing scenario where the two agents choose whether to overfish or practice restrained fishing.

Accepted Answer

The answer of Using a payoff table, illustrate how the...

Question 14

Which of the following statements is correct?

Accepted Answer

A)  It is paradoxical that people can be made better off by requiring them to do something that they would choose to do voluntarily. 
B)  It is paradoxical that people cannot be made better off by requiring them to do something that they would choose to do voluntarily. 
C)  Even though none contribute voluntarily, all would agree to be taxed as long as everyone else is also taxed. 
D)  Even though everyone contributes voluntarily, no one would agree to be taxed if everyone else is not taxed. 
A)  It is paradoxical that people can be made better off by requiring them to do something that they would choose to do voluntarily. 
B)  It is paradoxical that people cannot be made better off by requiring them to do something that they would choose to do voluntarily. 
C)  Even though none contribute voluntarily, all would agree to be taxed as long as everyone else is also taxed. 
D)  Even though everyone contributes voluntarily, no one would agree to be taxed if everyone else is not taxed.

Question 15

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: Goods Classification) Refer to the table. Classify the goods in the table into the four classifications listed. $$\begin{array} { | l | l | } 
\hline \text { a. } & \text { rival, excludable goods } \
\hline \text { b. } & \text { nonrival, nonexcludable goods } \
\hline \text { c. } & \text { rival, nonexcludable goods } \
\hline \text { d. } & \text { excludable, nonrival goods } \
\hline
\end{array}$$

Accepted Answer

a. rival, excludable goods: your economi

Question 16

In the case of broadcast, antenna television, the ______ problem is partly overcome through the use of advertising.

Accepted Answer

A)  free rider problem 
B)  revenue stream problem 
C)  liquidity problem 
D)  accessibility problem 
A)  free rider problem 
B)  revenue stream problem 
C)  liquidity problem 
D)  accessibility problem

Question 17

A rival good is one where:

Accepted Answer

A)  one person's use does not impinge on another person's ability to enjoy the same good. 
B)  one person's use prevents another person's ability to use that good at the same time. 
C)  two people can use the same good at the same time. 
D)  the good is simultaneously nonexcludable and public. 
A)  one person's use does not impinge on another person's ability to enjoy the same good. 
B)  one person's use prevents another person's ability to use that good at the same time. 
C)  two people can use the same good at the same time. 
D)  the good is simultaneously nonexcludable and public.

Question 18

Many individuals refer to education as a public good. How is education NOT a public good?

Accepted Answer

A)  Its acquisition is rival. 
B)  Its acquisition is excludable. 
C)  Its acquisition is both rival and excludable. 
D)  Its acquisition is usually rival and rarely excludable. 
A)  Its acquisition is rival. 
B)  Its acquisition is excludable. 
C)  Its acquisition is both rival and excludable. 
D)  Its acquisition is usually rival and rarely excludable.

Question 19

When public goods are funded through advertising, the problems of both free and forced riders can be mitigated.

Accepted Answer

A) True 
 B)False

Question 20

Markets tend to be inefficient when it comes to public goods because:

Accepted Answer

A)  the government tends to overproduce the good. 
B)  free riders lead to an underproduction of the good. 
C)  the rival nature of the good makes it hard to collect payment from consumers. 
D)  consumers tend to value these goods less than private goods. 
A)  the government tends to overproduce the good. 
B)  free riders lead to an underproduction of the good. 
C)  the rival nature of the good makes it hard to collect payment from consumers. 
D)  consumers tend to value these goods less than private goods.

Exam 19: Public Goods and the Tragedy of the Commons

Street lights are an example of a good that is:

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

Tuna in the ocean is a common resource because:

Asteroid deflection would be considered a:

An uneducated grandmother who does not have children living with her but pays for public school education through her property tax is a:

Theoretically, when property rights are difficult to establish, multi-country agreements could help to solve the tragedy of the commons, but it has not been possible to establish any such agreement to date.

A college student who must pay fees toward a recreational facility that will be built after he has graduated and moved away is a:

To provide the necessary funding for an asteroid defense shield, the

Wealthy industrialist Henry Hawk fears an asteroid hitting Earth and is willing and able to pay $15 billion to develop an asteroid deflection system. Suppose asteroid deflection only costs $10 billion and Hawk makes asteroid deflection a reality. What type of good has Henry Hawk provided?

A cell phone is a ______ because it is ______.

A common resource is:

Uncongested, nontoll roads are a good example of a:

Using a payoff table, illustrate how the tragedy of the commons problem could be likened to a prisoner's dilemma situation. Use a two-agent scenario and apply it to a fishing scenario where the two agents choose whether to overfish or practice restrained fishing.

Which of the following statements is correct?

In the case of broadcast, antenna television, the ______ problem is partly overcome through the use of advertising.

A rival good is one where:

Many individuals refer to education as a public good. How is education NOT a public good?

When public goods are funded through advertising, the problems of both free and forced riders can be mitigated.

Markets tend to be inefficient when it comes to public goods because:

The Big Ideas

The Power of Trade and Comparative

Supply and Demand

Equilibrium

Elasticity and Its Applications

Taxes and Subsidies

The Price System

Price Ceilings and Floors

International Trade

Externalities- When the Price Is Not Right

Costs and Profit Maximization Under Competition

Competition and the Invisible Hand

Monopoly

Price Discrimination

Oligopoly and Game Theory

Competing for Monopoly

Monopolistic Competition and Advertising

Labor Markets

Political Economy and Public Choice

Economics, Ethics, and Public Policy

Managing Incentives

Stock Markets and Personal Finance

Price Discrimination

Consumer Choice

Filters

A cell phone is a because it is .