Question 1

Which of the following would be considered a private good?

Accepted Answer

A) a ferry boat ride to an island with open seating 
B) a public beach 
C) fish in the ocean 
D) a swimming suit 
A) a ferry boat ride to an island with open seating 
B) a public beach 
C) fish in the ocean 
D) a swimming suit

Question 2

Goods that are rival in consumption but not excludable would be considered

Accepted Answer

A) club goods. 
B) common resources. 
C) public goods. 
D) private goods. 
A) club goods. 
B) common resources. 
C) public goods. 
D) private goods.

Question 3

Advocates of antipoverty programs claim that fighting poverty is a public good.

Accepted Answer

A) True 
 B)False

Question 4

The idea that "externalities arise because something of value has no price attached to it" is associated with

Accepted Answer

A) public goods, but not with common resources. 
B) common resources, but not with public goods. 
C) both public goods and common resources. 
D) neither public goods nor common resources. 
A) public goods, but not with common resources. 
B) common resources, but not with public goods. 
C) both public goods and common resources. 
D) neither public goods nor common resources.

Question 5

Table 11-2
Consider a small town with only three families, the Greene family, the Brown family, and the Black family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight.  
-Refer to Table 11-2. Suppose the cost to install each streetlight is $900 and the families have agreed to split the cost of installing the streetlights equally. If the residents choose to install the number of streetlights that will maximize total surplus from the streetlights, how much total surplus will the Greene family receive?

Accepted Answer

A) -$40 
B) $0 
C) $40 
D) $60 
A) -$40 
B) $0 
C) $40 
D) $60

Question 6

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Accepted Answer

A) True 
 B)False

Question 7

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Accepted Answer

A) those who stand to gain have an incentive to tell the truth. 
B) those who stand to lose have an incentive to exaggerate their true costs. 
C) answers to the survey questions will always be downwardly biased. 
D) not everyone asked will be using the highway. 
A) those who stand to gain have an incentive to tell the truth. 
B) those who stand to lose have an incentive to exaggerate their true costs. 
C) answers to the survey questions will always be downwardly biased. 
D) not everyone asked will be using the highway.

Question 8

Table 11-2
Consider a small town with only three families, the Greene family, the Brown family, and the Black family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight.  
-Refer to Table 11-2. Suppose the cost to install each streetlight is $360 and the families have agreed to split the cost of installing the streetlights equally. To maximize their own surplus, how many streetlights would the Greene's like the town to install?

Accepted Answer

A) 0 streetlights 
B) 1 streetlight 
C) 2 streetlights 
D) 3 streetlights 
A) 0 streetlights 
B) 1 streetlight 
C) 2 streetlights 
D) 3 streetlights

Question 9

Even economists who advocate small government agree that national defense is a good that the government should provide.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following goods is nonrival in consumption and excludable?

Accepted Answer

A) Grand Canyon National Park on a rainy, cool day 
B) Disney World on a rainy, cool day 
C) a crowded public beach on a sunny, warm day 
D) White Mountain ski resort on a sunny, mild day 
A) Grand Canyon National Park on a rainy, cool day 
B) Disney World on a rainy, cool day 
C) a crowded public beach on a sunny, warm day 
D) White Mountain ski resort on a sunny, mild day

Question 11

A view of a spectacular sunset along a private beach is an example of a

Accepted Answer

A) private good. 
B) public good. 
C) nonrival but excludable good. 
D) rival but nonexcludable good. 
A) private good. 
B) public good. 
C) nonrival but excludable good. 
D) rival but nonexcludable good.

Question 12

Which two types of goods are excludable?

Accepted Answer

Private go

Question 13

Markets fail to allocate resources efficiently when

Accepted Answer

A) demanders and suppliers cannot agree on a price. 
B) goods are rival in consumption and excludable. 
C) property rights are not well established. 
D) too many buyers and sellers exist in the same market. 
A) demanders and suppliers cannot agree on a price. 
B) goods are rival in consumption and excludable. 
C) property rights are not well established. 
D) too many buyers and sellers exist in the same market.

Question 14

The difference between specific knowledge and general knowledge is that

Accepted Answer

A) the creation of general knowledge is usually more profitable for the creator. 
B) specific knowledge is excludable, while general knowledge is not excludable. 
C) general knowledge is excludable, while specific knowledge is not excludable. 
D) general knowledge is rival in consumption, while specific knowledge is not rival in consumption. 
A) the creation of general knowledge is usually more profitable for the creator. 
B) specific knowledge is excludable, while general knowledge is not excludable. 
C) general knowledge is excludable, while specific knowledge is not excludable. 
D) general knowledge is rival in consumption, while specific knowledge is not rival in consumption.

Question 15

Pay-per-view broadcasts are

Accepted Answer

A) private goods. 
B) club goods. 
C) common resources. 
D) public goods. 
A) private goods. 
B) club goods. 
C) common resources. 
D) public goods.

Question 16

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Accepted Answer

A) subsidizing basic research 
B) building lighthouses 
C) toll charges on congested roads 
D) cost-benefit analysis 
A) subsidizing basic research 
B) building lighthouses 
C) toll charges on congested roads 
D) cost-benefit analysis

Question 17

You and your friends watch a movie in your bedroom. For you and your friends, the enjoyment that you get from watching the movie is not rival in consumption.

Accepted Answer

A) True 
 B)False

Question 18

One of the least regulated common resources today is

Accepted Answer

A) state parks. 
B) the ocean. 
C) forest preserves. 
D) the Great Lakes. 
A) state parks. 
B) the ocean. 
C) forest preserves. 
D) the Great Lakes.

Question 19

Figure 11-1  
-Refer to Figure 11-1. In which box - A, B, C, or D - does clean air belong?

Accepted Answer

Clean air is a commo

Question 20

Which of the following is not a typical solution to the "Tragedy of the Commons?"

Accepted Answer

A) taxing the use of the common resource 
B) turning the common resource into a club good 
C) turning the common resource into a private good 
D) regulating the use of the common resource 
A) taxing the use of the common resource 
B) turning the common resource into a club good 
C) turning the common resource into a private good 
D) regulating the use of the common resource

Which of the following would be considered a private good?

Goods that are rival in consumption but not excludable would be considered

Advocates of antipoverty programs claim that fighting poverty is a public good.

The idea that "externalities arise because something of value has no price attached to it" is associated with

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Even economists who advocate small government agree that national defense is a good that the government should provide.

Which of the following goods is nonrival in consumption and excludable?

A view of a spectacular sunset along a private beach is an example of a

Which two types of goods are excludable?

Markets fail to allocate resources efficiently when

The difference between specific knowledge and general knowledge is that

Pay-per-view broadcasts are

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

You and your friends watch a movie in your bedroom. For you and your friends, the enjoyment that you get from watching the movie is not rival in consumption.

One of the least regulated common resources today is

Figure 11-1 -Refer to Figure 11-1. In which box - A, B, C, or D - does clean air belong?

Which of the following is not a typical solution to the "Tragedy of the Commons?"

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters

Exam 11: Public Goods and Common Resources

Which of the following would be considered a private good?

Goods that are rival in consumption but not excludable would be considered

Advocates of antipoverty programs claim that fighting poverty is a public good.

The idea that "externalities arise because something of value has no price attached to it" is associated with

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Even economists who advocate small government agree that national defense is a good that the government should provide.

Which of the following goods is nonrival in consumption and excludable?

A view of a spectacular sunset along a private beach is an example of a

Which two types of goods are excludable?

Markets fail to allocate resources efficiently when

The difference between specific knowledge and general knowledge is that

Pay-per-view broadcasts are

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

You and your friends watch a movie in your bedroom. For you and your friends, the enjoyment that you get from watching the movie is not rival in consumption.

One of the least regulated common resources today is

Figure 11-1 -Refer to Figure 11-1. In which box - A, B, C, or D - does clean air belong?

Which of the following is not a typical solution to the "Tragedy of the Commons?"

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters