Question 1

Which of the following does NOT make the tragedy of commons for tuna even worse?

Accepted Answer

A)  Multiple countries tag and track tuna throughout the Pacific. 
B)  Many fishermen are involved in fishing tuna. 
C)  Governments subsidize fishing extensively. 
D)  Demand for tuna has decreased significantly. 
A)  Multiple countries tag and track tuna throughout the Pacific. 
B)  Many fishermen are involved in fishing tuna. 
C)  Governments subsidize fishing extensively. 
D)  Demand for tuna has decreased significantly.

Question 2

List and describe the three methods that are used to minimize the tragedy of the commons and achieve an efficient use of a common resource.

Accepted Answer

(1) property rights: The tragedy of over

Question 3

A jump rope is a:

Accepted Answer

A)  rival good. 
B)  public good. 
C)  common good. 
D)  nonrival good. 
A)  rival good. 
B)  public good. 
C)  common good. 
D)  nonrival good.

Question 4

Tragedy of the commons problems are harder to solve when:

Accepted Answer

A)  people who have access to the common good cannot be identified. 
B)  people who have access to the common good are closely related. 
C)  a lot of unrelated people have access to the common good. 
D)  only a few unrelated people have access to the common good. 
A)  people who have access to the common good cannot be identified. 
B)  people who have access to the common good are closely related. 
C)  a lot of unrelated people have access to the common good. 
D)  only a few unrelated people have access to the common good.

Question 5

State highways 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 6

Common resources are not individually owned, which creates the incentive for their overuse and overconsumption.

Accepted Answer

A) True 
 B)False

Question 7

Free riders are people who:

Accepted Answer

A)  enjoy public goods without paying for them. 
B)  pay for public goods but do not end up enjoying them. 
C)  pay for both private and public goods. 
D)  ride public transportation without paying. 
A)  enjoy public goods without paying for them. 
B)  pay for public goods but do not end up enjoying them. 
C)  pay for both private and public goods. 
D)  ride public transportation without paying.

Question 8

If you give a firm $1,000 to protect the earth from asteroids:

Accepted Answer

A)  your contribution will not have an effect on whether the firm will be successful in protecting the earth. 
B)  your contribution will be vital in determining whether the firm will have enough resources to combat asteroids. 
C)  your family will now have adequate protection. 
D)  you are considered a free-rider of public goods. 
A)  your contribution will not have an effect on whether the firm will be successful in protecting the earth. 
B)  your contribution will be vital in determining whether the firm will have enough resources to combat asteroids. 
C)  your family will now have adequate protection. 
D)  you are considered a free-rider of public goods.

Question 9

Some animals are going extinct because of a lack of property rights over these animals.

Accepted Answer

A) True 
 B)False

Question 10

Digital music 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 11

Which of the following statements is FALSE?

Accepted Answer

A)  The total benefit of a public good equals the sum of the benefits to each person. 
B)  It is harder for society to produce optimal amounts of public goods than it is for private goods. 
C)  The United States Postal Service is not a public good. 
D)  People value public goods differently. 
A)  The total benefit of a public good equals the sum of the benefits to each person. 
B)  It is harder for society to produce optimal amounts of public goods than it is for private goods. 
C)  The United States Postal Service is not a public good. 
D)  People value public goods differently.

Question 12

The O'Reilly Factor is a popular cable television news show. To watch the show requires a paid subscription. Therefore, which of the following is TRUE?

Accepted Answer

A)  This show is a nonrival private good because 1) nonpayers can be excluded and 2) when one person watches it does not diminish another person's ability to watch. 
B)  This show is a public good because payers and nonpayers alike are watching a rival show. 
C)  This show is a public good because 1) no one can be excluded and 2) when one person watches it does not diminish another person's ability to watch. 
D)  This show is a common good because 1) nonpayers can be excluded and 2) when one person watches it does not diminish another person's ability to watch. 
A)  This show is a nonrival private good because 1) nonpayers can be excluded and 2) when one person watches it does not diminish another person's ability to watch. 
B)  This show is a public good because payers and nonpayers alike are watching a rival show. 
C)  This show is a public good because 1) no one can be excluded and 2) when one person watches it does not diminish another person's ability to watch. 
D)  This show is a common good because 1) nonpayers can be excluded and 2) when one person watches it does not diminish another person's ability to watch.

Question 13

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
-Describe the difference between each of the following three pairs of goods or services according to whether they are excludable or nonexcludable and rival or nonrival. $\begin{array}{|l|l|}
\hline \text { a. } & \text { a city police department and a commercial security system } \
\hline \text { b. } & \text { movies on } \mathrm{HBO} \text { and movies on PBS (Public Broadcasting Service) } \
\hline \text { c. } & \text { fish in the ocean and fish in a fish farm }\\hline
\end{array}$

Accepted Answer

a. A city police department is nonexclud

Question 14

Hamburgers are example of goods that are:

Accepted Answer

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

Question 15

Solving a tragedy of the commons problem could be done through:
I. establishment of property rights over the common resource.
II. the invisible hand.
III. government-armed protection.

Accepted Answer

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

Question 16

Which of the following goods best exemplifies a nonrival good?

Accepted Answer

A)  a bottle of water 
B)  the Internet 
C)  an automobile 
D)  your apartment 
A)  a bottle of water 
B)  the Internet 
C)  an automobile 
D)  your apartment

Question 17

The use of advertising makes it possible for the market to produce some public goods.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following has been the most typical way to solve tragedy of the commons problems?

Accepted Answer

A)  government command and control solutions, like limiting the number of fishing boats 
B)  government command and constraint solutions, like prohibiting any attempt to fish common areas 
C)  tradable allowances which make fish a tradable market 
D)  tradable allowances which result in "capital stuffing" 
A)  government command and control solutions, like limiting the number of fishing boats 
B)  government command and constraint solutions, like prohibiting any attempt to fish common areas 
C)  tradable allowances which make fish a tradable market 
D)  tradable allowances which result in "capital stuffing"

Question 19

Common resources are goods that are:

Accepted Answer

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

Question 20

Private goods:
I. are excludable.
II. can be priced.
III. are rival in consumption.

Accepted Answer

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

Exam 19: Public Goods and the Tragedy of the Commons

Which of the following does NOT make the tragedy of commons for tuna even worse?

List and describe the three methods that are used to minimize the tragedy of the commons and achieve an efficient use of a common resource.

A jump rope is a:

Tragedy of the commons problems are harder to solve when:

State highways are an example of a:

Common resources are not individually owned, which creates the incentive for their overuse and overconsumption.

Free riders are people who:

If you give a firm $1,000 to protect the earth from asteroids:

Some animals are going extinct because of a lack of property rights over these animals.

Digital music is an example of a:

Which of the following statements is FALSE?

The O'Reilly Factor is a popular cable television news show. To watch the show requires a paid subscription. Therefore, which of the following is TRUE?

Hamburgers are example of goods that are:

Solving a tragedy of the commons problem could be done through: I. establishment of property rights over the common resource. II. the invisible hand. III. government-armed protection.

Which of the following goods best exemplifies a nonrival good?

The use of advertising makes it possible for the market to produce some public goods.

Which of the following has been the most typical way to solve tragedy of the commons problems?

Common resources are goods that are:

Private goods: I. are excludable. II. can be priced. III. are rival in consumption.

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

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