Exam 11: Public Goods and Common Resources

Which of the following is not an advantage to congestion charges for motorists who wish to drive on busy streets?

Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?

A free-rider is someone who receives the benefit of a good but avoids paying for it.

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

It is commonly argued that national defense is a public good. Nevertheless, the weapons used by the U.S. military are produced by private firms. We can conclude that

Under which of the following scenarios would a park be considered a public good?

Which of the following represents a potential solution to the problem of environmental pollution?

When an infinite value is placed on human life, policymakers who rely on cost-benefit analysis

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. 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?

A lighthouse is typically considered to be a public good because

Most lighthouses are operated by the government because

Which of the following goods is the best example of a public good?

Which of the following statements is not correct?

A regional lobster management board recently proposed a five-year moratorium on lobster fishing in the Atlantic waters south of Cape Cod based on a study of the lobster population. Which of the following statements is not correct?

Table 11-4 There are four homes along Belmont Circle, which surrounds a small plot of land. The land currently has no trees, and the 4 homeowners -- Adams, Benitez, Chen, and Davis -- are considering the idea of contributing to a pool of money that will be used to plant up to 4 trees. The table represents their willingness to pay, that is, the maximum amount that each homeowner is willing to contribute toward each tree. -Refer to Table 11-4. Suppose the cost to plant each tree is $120 and the 4 homeowners have agreed to split all tree-planting costs equally. How many trees would Adams prefer to plant?

Is a congested nontoll road excludable? Is it rival in consumption? How do we classify a congested nontoll road in terms of the four types of goods?

Are public goods excludable? Are they rival in consumption?

Figure 11-1 -Refer to Figure 11-1. To which of the boxes - A, B, C, or D - does the phenomenon of free riding most clearly apply?

Under which of the following scenarios would a park be considered a common resource?

A free rider is a person who pays for a good but does not receive the benefit of it.