Question 1

If the use of a common resource is not regulated,

Accepted Answer

A) no one can enjoy it. 
B) it will tend to be underused. 
C) property rights will be clearly defined. 
D) it will be overused. 
A) no one can enjoy it. 
B) it will tend to be underused. 
C) property rights will be clearly defined. 
D) it will be overused.

Question 2

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Accepted Answer

A) $1 million. 
B) $5 million. 
C) $10 million. 
D) $20 million. 
A) $1 million. 
B) $5 million. 
C) $10 million. 
D) $20 million.

Question 3

Why has the value of ivory threatened the extinction of the elephant, whereas the value of beef has enhanced the survival of the cow?

Accepted Answer

A) Cows are a common resource, whereas elephants are owned by governments. 
B) Elephants are larger than cows, requiring more economic resources. 
C) Elephants live in Africa, where economic resources are scarce. 
D) Elephants are a common resource, whereas cows are privately owned. 
A) Cows are a common resource, whereas elephants are owned by governments. 
B) Elephants are larger than cows, requiring more economic resources. 
C) Elephants live in Africa, where economic resources are scarce. 
D) Elephants are a common resource, whereas cows are privately owned.

Question 4

Which of the following is most likely to face extinction?

Accepted Answer

A) dogs living as pets in households 
B) dairy cows living on farms and producing milk 
C) bald eagles living in zoos 
D) tigers living in the wild 
A) dogs living as pets in households 
B) dairy cows living on farms and producing milk 
C) bald eagles living in zoos 
D) tigers living in the wild

Question 5

Drivers have to pay a toll to drive on certain roads. In essence, a toll is a corrective tax on the externality of __________.

Accepted Answer

The answer of Drivers have to pay a toll to...

Question 6

Figure 11-1  
-Refer to Figure 11-1. Which of the following statements is correct?

Accepted Answer

A) A congested toll road is an example of the type of good represented by Box B. 
B) An uncongested toll road is an example of the type of good represented by Box D. 
C) A congested nontoll road is an example of the type of good represented by Box C. 
D) An uncongested nontoll road is an example of the type of good represented by Box A. 
A) A congested toll road is an example of the type of good represented by Box B. 
B) An uncongested toll road is an example of the type of good represented by Box D. 
C) A congested nontoll road is an example of the type of good represented by Box C. 
D) An uncongested nontoll road is an example of the type of good represented by Box A.

Question 7

Excludability is the property of a good whereby

Accepted Answer

A) one person's use diminishes other peoples' use. 
B) a person can be prevented from using it. 
C) the government rations the quantity of a good that is available. 
D) the resource is congestible. 
A) one person's use diminishes other peoples' use. 
B) a person can be prevented from using it. 
C) the government rations the quantity of a good that is available. 
D) the resource is congestible.

Question 8

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

When the absence of property rights causes a market failure, the government can potentially solve the problem

Accepted Answer

A) by clearly defining property rights. 
B) through regulation. 
C) by supplying the good itself. 
D) All of the above are correct. 
A) by clearly defining property rights. 
B) through regulation. 
C) by supplying the good itself. 
D) All of the above are correct.

Question 11

Because public goods are

Accepted Answer

A) excludable, people have an incentive to be free riders. 
B) excludable, people do not have an incentive to be free riders. 
C) not excludable, people have an incentive to be free riders. 
D) not excludable, people do not have an incentive to be free riders. 
A) excludable, people have an incentive to be free riders. 
B) excludable, people do not have an incentive to be free riders. 
C) not excludable, people have an incentive to be free riders. 
D) not excludable, people do not have an incentive to be free riders.

Question 12

Figure 11-1  
-Refer to Figure 11-1. In which box - A, B, C, or D - does each of the following types of roads belong? (Consider each type of road separately.)• an uncongested toll road
• an uncongested nontoll road
• a congested toll road
• a congested nontoll road

Accepted Answer

An uncongested toll road belon

Exam 11: Public Goods and Common Resources

If the use of a common resource is not regulated,

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Why has the value of ivory threatened the extinction of the elephant, whereas the value of beef has enhanced the survival of the cow?

Which of the following is most likely to face extinction?

Drivers have to pay a toll to drive on certain roads. In essence, a toll is a corrective tax on the externality of __________.

Figure 11-1 -Refer to Figure 11-1. Which of the following statements is correct?

Excludability is the property of a good whereby

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

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

When the absence of property rights causes a market failure, the government can potentially solve the problem

Because public goods are

Figure 11-1 -Refer to Figure 11-1. In which box - A, B, C, or D - does each of the following types of roads belong? (Consider each type of road separately.)• an uncongested toll road • an uncongested nontoll road • a congested toll road • a congested nontoll road

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

Applications: 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

Measuring a Nation S Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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