Exam 17: Public Goods and Common Resources

If left to the private market, the amount of police protection provided in a city would be ________ than it is now, and free riders would pay for police protection.

An individual will continue to use a common resource until his or her:

Which of the following activities is a public good?

Which of the following is a common resource?

Which of the following statements about the provision of public goods is correct?

For a public good, nonpayers excluded from obtaining the benefits of the good.

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

A very large museum could accommodate many more visitors than it does if it did not charge such a high price for admission.Visits to the museum are a(n):

Television programs are nonrival because:

National defense and ebooks are similar in that both are , but they differ in that national defense is while ebooks are not.

Stephanie stops at a gas station to fill up the tank of her car.The gallons of unleaded gasoline in her tank are best described as:

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.How much is Ann willing to pay for E street lights?

Two students, Nikos and Camila, are working on a team project for a course.The project will receive one grade that will affect both students equally.Although they have done a great job, they have not kept track of their bibliography sources very well.They both have all the information, but neither has done the bibliography.Camila knows that Nikos will eventually do the bibliography, since Nikos does not like to turn in incomplete work.As a result:

Pay-per-view movies are an example of a common resource.True

For a public good, the marginal social benefit:

(Table: Marginal Benefit, Cost, and Consumer Surplus) The table Marginal Benefit, Cost, and Consumer Surplus shows six consumers' willingness to pay (his or her individual marginal benefit) for one iTunes download of a Jack Johnson song.If the marginal social cost is constant at $0, then the efficient price is ________ and consumer surplus is _.

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.The marginal social benefit of G street lights is

Which of the following is an example of an artificially scarce good?

Figure: Correcting for Market Failure (Figure: Correcting for Market Failure) Assume that there is an external cost involved in the Market illustrated in the figure Correcting for Market Failure.If the government intervenes to correct for the external cost, the new ________ will now reflect _.

(Table: Marginal Benefit, Cost, and Consumer Surplus) The table Marginal Benefit, Cost, and Consumer Surplus shows six consumers' willingness to pay (his or her individual marginal benefit) for one iTunes download of a Jack Johnson song.If the marginal social cost is constant at ________, then consumers will purchase this good and consumer Surplus is _.