Exam 19: Public Goods and the Tragedy of the Commons

The lionfish is an invasive species from the Indo-Pacific, now also found in the East Coast of the United States and in the Caribbean. An exceptional predator that reproduces year round, the lionfish has wreaked havoc on the natural ecosystem with a population more than 10 times higher than in its native environment. With a population so high, it is unlikely the extermination practices of any one person, or even any one organization could eliminate them, though eliminating them would benefit everyone. Therefore, the National Oceanic and Atmospheric Administration (NOAA) launched a campaign highlighting how tasty lionfish are and presenting instructions on how to cook them. The NOAA's approach to solving this problem is best described as using the economics of:

You can watch the show Spartacus on the premium cable television station Starz for about $10 a month.

List at least two methods through which a country might solve a tragedy of the commons problem.

Private goods are both:

When it comes to national defense, antiwar protesters are:

When someone receives the benefits of cable TV service, the benefit others can receive from this service gets reduced.

A good is nonexcludable if it is:

Nonrival private goods are likely to be:

Google is an example of a potential "club good" that is free because of advertising.