Exam 17: Public Goods and Common Resources

A city government engages in cost-benefit analysis when it estimates the social costs and social benefits to provide trash collection services.False

Which of the following goods is most likely an artificially scarce good?

Figure: Market Failure (Figure: Market Failure) In the figure Market Failure, if production in this competitive market is at quantity G, then:

DeVonda owns a music store.One night, vandals broke her store's front window.DeVonda called the police, and the police investigated the crime.The police services that DeVonda used are best described as:

For a nonexcludable good like national defense, the private market will lead to:

Figure: Market Failure (Figure: Market Failure) Look at the figure Market Failure.Suppose the supply curve represents the marginal cost of providing street lights in a neighborhood that is composed of two people, Ann and Joe.The demand curve represents the marginal benefit that Ann receives from the street lights.Suppose that Joe's marginal benefit from the street lights is a constant amount equal to AC.If Ann is the only person to pay for the streetlights, how many lights will be provided?

Figure: Market Failure (Figure: Market Failure) Look at the figure Market Failure.Suppose it represents the demand and marginal cost of pounds of shrimp in the bay.The additional cost of the shrimp due to the depletion of the common resource is equal to AC.At output F:

Which of the following is an example of a private good?

Volunteer fire departments are good examples of the ________ provision of _.

The best example of a common resource is:

If policy makers provide only enough tradable permits to provide efficient use of a common resource, only those who will use the resource.

Figure: Market Failure (Figure: Market Failure) Look at the figure Market Failure.Suppose it represents the demand and marginal cost of pounds of shrimp in the bay.The additional cost of the shrimp due to the depletion of the common resource is equal to AC.Without government intervention, the price of shrimp will be per pound.

When a good is nonrival in consumption, it means the marginal cost of any individual's consumption is zero.False

Consider an economy with just two citizens.If Sanjay's marginal benefit from mosquito control is $10 and Anjuli's marginal benefit is $25, then the optimal level of a public good like mosquito control occurs when the marginal cost of mosquito control is:

Producers of artificially scarce goods face similar as natural monopolists; they decline over the relevant range of output.

For a good to be efficiently provided by the private market, which of the following is essential?

The federal government provides national defense to the country.Why would it be unlikely for national defense to be provided by a private entrepreneur?

(Table: Total Cost and Total Individual Benefit) The table Total Cost and Total Individual Benefit refers to animal control for residents of a small town.If an individual resident were to decide about hiring and paying for animal control officers on his or her own, how many officers would that resident hire?

Figure: Market Failure (Figure: Market Failure) Look at the figure Market Failure.Suppose the supply curve represents the marginal cost of providing street lights in a neighborhood that is composed of two people, Ann and Joe.The demand curve represents the marginal benefit that Ann receives from the street lights.Suppose that Joe's marginal benefit from the street lights is a constant amount equal to AC.Providing F street lights is _______ because _.

If a good is subject to the free-rider problem and an inefficiently high level of consumption, the good must be a(n):