Exam 19: Public Goods and the Tragedy of the Commons

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?

Which of the following is a list of nonexcludable, nonrival only?

Which of the following scenarios best describes a tragedy of the commons problem?

A tragedy of the commons often results from ______ and ______.

The series The Walking Dead airs on AMC, a cable television station. This show is a:

A fisherman has an incentive to overfish because catching less fish today doesn't increase the number of fish he can catch in the future.

Public goods are: I. excludable. II. nonrival. III. free to those who do not pay.

Which of the following statements is TRUE? I. Overfishing results from fish being privately owned by profit-maximizing firms. II. If a fisherman catches a lot of fish, he creates a negative externality because there are less fish to catch for everyone else. III. There is no incentive for an individual to fish less simply to leave more fish for everyone else to catch.

Many states have strict regulations regarding the hunting of big game animals (i.e., bison, elk, moose, etc.). For example, in the state of Washington, hunters wishing to hunt elk must purchase a tag. Upon purchase of the tag, individuals must decide in advance on the area in which they wish to hunt and with which weapon, and they are locked into these decisions for the entire season. Each person may purchase only one tag per year and, in 2009, the cost for a nonresident of Washington to purchase a tag was $396.Why would state governments impose such strict regulations on the hunting of big game in their states? Would the cost of an elk tag for residents of Washington be higher or lower than the cost for nonresidents? Explain.

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: Mosquito Spraying Family A Family B Family C Number of Marginal Marginal Marginal Marginal cost sprayings benefit benefit benefit of spraying 1 \ 50 \ 80 \ 30 \ 80 2 40 60 10 100 3 20 40 5 135 4 10 20 1 147 Refer to the table. A small town consists of three families who live in an area with lots of mosquitoes. The town is considering a spraying program to control the mosquito population. The marginal benefits of the spraying program are provided for each family, along with the marginal costs of the spraying program. How many times should the town spray for mosquitoes?

Music records are an example of a:

The city government taxes its residents to pay for mosquito control. Betty is not happy about paying the tax, for mosquitoes never bite her. Betty is a:

Sarah pays county taxes, part of which are used to subsidize public schools, even though she has no children. Sarah is an example of:

Traditional radio stations provide their services free of charge to the listeners. Is this an efficient solution? How do providers make profits?

Goods that are not excludable include both:

A free rider shares the benefit of a ______ without paying a share of the costs.

Radio programs serve as an example of a public good that is provided efficiently by economic markets.

Asteroid deflection is a good that would be profitable for an insurance company to provide.

What quantity of public goods should the government produce?

Tuna fish are being driven to extinction because of overfishing. If all the fishermen know about this, why don't they fish less to slow down the extinction?