Exam 11: Public Goods and Common Resources

One way to place a value on human life is to examine the risks that people voluntarily take and how much they must be paid for taking them. What is the approximate value of a human life according to studies that use this approach?

Which of the following is not a reason why government agencies subsidize basic research?

Scenario 11-1 Becky is a single mother of two young children who spend their days at a daycare center while Becky goes to work. The daycare center closes at 5:30. If parents do not pick up their children at or before 5:30, the daycare center charges a late fee of $5 per child for every 10 minutes the parent is late. -Refer to Scenario 11-1. Due to traffic, Becky expects to be 20 minutes late to pick up her children. How much would she be willing to pay for a variable toll road that would get her to the daycare center on time?

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?

The parable called the Tragedy of the Commons applies to goods such as

Table 11-1 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park. -Refer to Table 11-1. Suppose the cost to build the park is $9 per acre. How large should the park be to maximize total surplus from the park in Springfield?

Government policy can potentially raise economic well-being

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 $100 per hour. How many hours should be spent cleaning the lake to maximize total surplus for the residents in Widgetapolis?

A congested side street in your neighborhood is

The phenomenon of free riding is most closely associated with which type of good?

When one person enjoys the benefit of a tornado siren, she reduces the benefit to others.

Which of the following is an example of general knowledge, as opposed to specific knowledge that can be patented?

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 $300. How many trees should be planted to maximize the total surplus of the four homeowners?

Which of the following is an example of the Tragedy of the Commons?

If a road is congested, then use of that road by an additional person would lead to a

Which of the following is not a way for the government to solve the problem of excessive use of common resources?

Markets fail to allocate resources efficiently when

Neither public goods nor common resources are

Is national defense excludable? Is it rival in consumption? How do we classify national defense in terms of the four types of goods?