Question 1

Traffic lights would be considered:

Accepted Answer

A) a common resource. 
B) a private good. 
C) a public good. 
D) an artificially scarce good. 
A) a common resource. 
B) a private good. 
C) a public good. 
D) an artificially scarce good.

Question 2

Social disapproval carries a higher cost when you:

Accepted Answer

A) don't really know the people around you. 
B) don't care about the opinions of community members. 
C) rarely expect to interact with the people around you again. 
D) have very close interactions with community members. 
A) don't really know the people around you. 
B) don't care about the opinions of community members. 
C) rarely expect to interact with the people around you again. 
D) have very close interactions with community members.

Question 3

When a government bans a good:

Accepted Answer

A) it is attempting to solve the tragedy of the commons. 
B) it makes acquiring that good illegal. 
C) the cost of breaking the ban changes the trade-offs consumers face. 
D) All of these are true. 
A) it is attempting to solve the tragedy of the commons. 
B) it makes acquiring that good illegal. 
C) the cost of breaking the ban changes the trade-offs consumers face. 
D) All of these are true.

Question 4

Bans and quotas _______ succeed in situations where it is difficult or costly for authorities to monitor and punish rule-breakers.

Accepted Answer

A) often 
B) never 
C) rarely 
D) always 
A) often 
B) never 
C) rarely 
D) always

Question 5

Which of the following is an excludable good or service?

Accepted Answer

A) National Defense 
B) A public park 
C) Ice cream 
D) Air 
A) National Defense 
B) A public park 
C) Ice cream 
D) Air

Question 6

Which of the following is not an excludable good or service?

Accepted Answer

A) Fish in the ocean 
B) A wireless connection to the Internet 
C) A movie in a theater 
D) A candy bar 
A) Fish in the ocean 
B) A wireless connection to the Internet 
C) A movie in a theater 
D) A candy bar

Question 7

What determines how a government will pay for a public good?

Accepted Answer

A) The ease of collecting payout 
B) If the good can be made excludable 
C) The transfer of surplus 
D) All of these affect how a government allocates payment of public goods. 
A) The ease of collecting payout 
B) If the good can be made excludable 
C) The transfer of surplus 
D) All of these affect how a government allocates payment of public goods.

Question 8

The free rider problem is caused by the/a good's _______, which leads to the/an ________ of the good.

Accepted Answer

A) nonexcludability; undersupply 
B) "nonrivalness" in consumption; oversupply 
C) "rivalness" in consumption; overconsumption 
D) "rivalness" in consumption; undersupply 
A) nonexcludability; undersupply 
B) "nonrivalness" in consumption; oversupply 
C) "rivalness" in consumption; overconsumption 
D) "rivalness" in consumption; undersupply

Question 9

When a good is excludable:

Accepted Answer

A) one person's consumption of the good prevents or decreases the ability of others to consume it. 
B) sellers can prevent people who have not paid for the good from using it. 
C) consumers have a perception that the good is scarce. 
D) the government enacts specific import policies limiting the good's supply. 
A) one person's consumption of the good prevents or decreases the ability of others to consume it. 
B) sellers can prevent people who have not paid for the good from using it. 
C) consumers have a perception that the good is scarce. 
D) the government enacts specific import policies limiting the good's supply.

Question 10

The free-rider problem exists when a good is:

Accepted Answer

A) nonexcludable. 
B) rival in consumption. 
C) excludable and rival in consumption. 
D) excludable and nonrival in consumption. 
A) nonexcludable. 
B) rival in consumption. 
C) excludable and rival in consumption. 
D) excludable and nonrival in consumption.

Question 11

Wikipedia would be considered:

Accepted Answer

A) a public good. 
B) a private good. 
C) a common resource. 
D) an artificially scarce resource. 
A) a public good. 
B) a private good. 
C) a common resource. 
D) an artificially scarce resource.

Question 12

If the punishment for breaking a government ban is _________, or the likelihood of getting caught is _________, the cost associated with breaking the ban may not be high enough to change the trade-off that consumers face.

Accepted Answer

A) not severe; low 
B) severe; high 
C) severe; low 
D) not severe; high 
A) not severe; low 
B) severe; high 
C) severe; low 
D) not severe; high

Question 13

One way to solve the free rider problem is to:

Accepted Answer

A) have the government provide the good at a certain cost. 
B) make the good or service more excludable. 
C) tax those who truly value the good. 
D) tax everyone an equal amount for the good. 
A) have the government provide the good at a certain cost. 
B) make the good or service more excludable. 
C) tax those who truly value the good. 
D) tax everyone an equal amount for the good.

Question 14

Goods that are considered common resources are commonly:

Accepted Answer

A) undersupplied. 
B) oversupplied. 
C) underconsumed. 
D) overconsumed. 
A) undersupplied. 
B) oversupplied. 
C) underconsumed. 
D) overconsumed.

Question 15

Which of the following is a public good that is difficult to make excludable?

Accepted Answer

A) Toll roads 
B) City buses 
C) State universities 
D) Police protection 
A) Toll roads 
B) City buses 
C) State universities 
D) Police protection

Question 16

Fish in the ocean would be considered:

Accepted Answer

A) a common resource. 
B) a private good. 
C) a public good. 
D) an artificially scarce good. 
A) a common resource. 
B) a private good. 
C) a public good. 
D) an artificially scarce good.

Question 17

When what people pay for a good does not necessarily reflect the real value they place on it, it is likely that the:

Accepted Answer

A) free rider problem exists. 
B) good will be oversupplied. 
C) tragedy of the commons problem exists. 
D) good is nonrivalrous. 
A) free rider problem exists. 
B) good will be oversupplied. 
C) tragedy of the commons problem exists. 
D) good is nonrivalrous.

Question 18

Which of the following is a public good that is difficult to make excludable?

Accepted Answer

A) Sewer systems 
B) Fire protection 
C) National Defense 
D) All of these are nonexcludable public goods. 
A) Sewer systems 
B) Fire protection 
C) National Defense 
D) All of these are nonexcludable public goods.

Question 19

When a good becomes overconsumed and depleted, we can assume it is most likely a:

Accepted Answer

A) common resource. 
B) private good. 
C) public good. 
D) scarce good. 
A) common resource. 
B) private good. 
C) public good. 
D) scarce good.

Question 20

A public good is:

Accepted Answer

A) rival in consumption and excludable. 
B) excludable, but not rival in consumption. 
C) rival in consumption, but not excludable. 
D) neither rival in consumption nor excludable. 
A) rival in consumption and excludable. 
B) excludable, but not rival in consumption. 
C) rival in consumption, but not excludable. 
D) neither rival in consumption nor excludable.

Exam 19: Public Goods and Common Resources

Traffic lights would be considered:

Social disapproval carries a higher cost when you:

When a government bans a good:

Bans and quotas _______ succeed in situations where it is difficult or costly for authorities to monitor and punish rule-breakers.

Which of the following is an excludable good or service?

Which of the following is not an excludable good or service?

What determines how a government will pay for a public good?

The free rider problem is caused by the/a good's _______, which leads to the/an ________ of the good.

When a good is excludable:

The free-rider problem exists when a good is:

Wikipedia would be considered:

If the punishment for breaking a government ban is _________, or the likelihood of getting caught is _________, the cost associated with breaking the ban may not be high enough to change the trade-off that consumers face.

One way to solve the free rider problem is to:

Goods that are considered common resources are commonly:

Which of the following is a public good that is difficult to make excludable?

Fish in the ocean would be considered:

When what people pay for a good does not necessarily reflect the real value they place on it, it is likely that the:

Which of the following is a public good that is difficult to make excludable?

When a good becomes overconsumed and depleted, we can assume it is most likely a:

A public good is:

Economics and Life

Specialization and Exchange

Markets

Elasticity

Efficiency

Government Intervention

Consumer Behavior

Behavioral Economics: a Closer Look at Decision Making

Game Theory and Strategic Thinking

Information

Time and Uncertainty

The Costs of Production

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

The Facts of Production

International Trade

Externalities

Taxation and the Public Budget

Poverty, Inequality, and Discrimination

Political Choices

Public Policy and Choice Architecture

Filters

The free rider problem is caused by the/a good's _, which leads to the/an __ of the good.

If the punishment for breaking a government ban is _, or the likelihood of getting caught is _, the cost associated with breaking the ban may not be high enough to change the trade-off that consumers face.