Exam 11: Public Goods and Common Resources

Figure 11-1 -Refer to Figure 11-1. Once good x is provided, policymakers need to be concerned about how much of it is used. Good x is an example of the type of good represented by Box

The Tragedy of the Commons results when a good is

Which of the following is an example of the free-rider problem?

The ocean remains one of the largest unregulated resources for each of the following reasons except

The Tragedy of the Commons describes

Using a toll to reduce traffic when congestion is greatest is an example of a

One possible solution to the problem of protecting a common resource is to convert that resource to a private good.

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?

Without government intervention, public goods tend to be

If good x is available free of charge, then

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States. Any farmer with land above the aquifer can at present pump water out of it. We might expect that

Why do elephants face the threat of extinction while cows do not?

When a free-rider problem exists,

Figure 11-1 -Refer to Figure 11-1. The box labeled C represents

Table 11-6 Consider the city of Widgetapolis with only four residents, John, James, Mary, and Lydia. The four residents are trying to determine how many hours to spend in cleaning up the public lake. The table below shows each resident's willingness to pay for each hour of cleaning. ​ ​ -Refer to Table 11-6. Suppose the cost to clean the lake is $32 per hour and that the residents have agreed to split the cost of cleaning the lake equally. It would maximize Lydia's surplus if 6 hours of cleaning is done. ​

In almost all cases of common resources, the same problem arises as in the Tragedy of the __________.

Which of the following statements is not correct?

Recall the four types of goods. Are national defense and a patented invention the same type of good? Briefly explain.

Table 11-5 A small island off the coast of Cape Cod contains two restaurants and two retail stores. Tourists need to take a ferry boat to reach the island, but with a recent slowdown in the economy, tourists are less willing to pay for the boat ride to visit the island. The owners of the restaurants and stores on the island - Restaurants 1 and 2, and Stores A and B - think that if tourists could ride the ferry for free, they would be happy to visit the island, eat and shop. The business owners are considering contributing to a pool of money that will be used to pay for roundtrip ferry service each day. The table represents their willingness to pay, that is, the maximum amount that each business owner is willing to contribute, per day, to pay for each ferry trip. -Refer to Table 11-5. Suppose the cost to run the ferry for each roundtrip is $750. Then total surplus for the 4 business owners is

For all types of goods that are not private goods, the market fails to allocate resources efficiently because _________________.