Question 1

A common resource 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.

Question 2

A chocolate chip cookie 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 3

Without correction, the quantity of a public good that is exchanged will occur where:

Accepted Answer

A) the marginal social benefit of additional consumption exceeds the marginal social cost of additional production. 
B) the marginal social benefit is equal to the marginal social cost. 
C) the marginal social benefit of additional consumption is less than the marginal social cost of additional production. 
D) the marginal social cost is zero. 
A) the marginal social benefit of additional consumption exceeds the marginal social cost of additional production. 
B) the marginal social benefit is equal to the marginal social cost. 
C) the marginal social benefit of additional consumption is less than the marginal social cost of additional production. 
D) the marginal social cost is zero.

Question 4

Which type of good is rival in consumption, but not excludable?

Accepted Answer

A) Common resource 
B) Private 
C) Public 
D) Artificially scarce 
A) Common resource 
B) Private 
C) Public 
D) Artificially scarce

Question 5

If the government is supplying a public good, the efficient quantity occurs where the:

Accepted Answer

A) total social benefit equals the cost. 
B) marginal social benefit is greater than the cost. 
C) marginal social benefit equals the cost. 
D) total social benefit outweighs the total cost. 
A) total social benefit equals the cost. 
B) marginal social benefit is greater than the cost. 
C) marginal social benefit equals the cost. 
D) total social benefit outweighs the total cost.

Question 6

One way the government decides how to pay for public goods is by:

Accepted Answer

A) identifying how easy it is to exclude people who don't pay. 
B) determining who uses the good the most and increasing their property taxes. 
C) comparing individuals' marginal benefits. 
D) polling the public about the most appropriate funding measures. 
A) identifying how easy it is to exclude people who don't pay. 
B) determining who uses the good the most and increasing their property taxes. 
C) comparing individuals' marginal benefits. 
D) polling the public about the most appropriate funding measures.

Question 7

A smartphone 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 8

When we consider solving a free rider problem by changing social norms, it is helpful to remember that:

Accepted Answer

A) all costs aren't financial. 
B) social disapproval can be considered a cost. 
C) conflict with those in your community can be considered a cost. 
D) All of these are true. 
A) all costs aren't financial. 
B) social disapproval can be considered a cost. 
C) conflict with those in your community can be considered a cost. 
D) All of these are true.

Question 9

Which of the following statements describes a similarity between markets for common resources and markets with externalities?

Accepted Answer

A) The equilibrium quantity is too high. 
B) The price that competitive firms charge does not capture the true costs and benefits of consumption. 
C) Government involvement is needed in order to reach an efficient outcome. 
D) Generally, the good or service is oversupplied in the market. 
A) The equilibrium quantity is too high. 
B) The price that competitive firms charge does not capture the true costs and benefits of consumption. 
C) Government involvement is needed in order to reach an efficient outcome. 
D) Generally, the good or service is oversupplied in the market.

Question 10

When choosing the right amount of a public good to supply, the government often:

Accepted Answer

A) guesses, because people have an incentive to overstate a good's value. 
B) provides too much, because people have an incentive to understate a good's value. 
C) provides too little, because people have an incentive to overstate a good's value. 
D) fails to provide it, because people have an incentive to understate a good's value. 
A) guesses, because people have an incentive to overstate a good's value. 
B) provides too much, because people have an incentive to understate a good's value. 
C) provides too little, because people have an incentive to overstate a good's value. 
D) fails to provide it, because people have an incentive to understate a good's value.

Question 11

One of the difficulties the government faces when privatizing a common resource is:

Accepted Answer

A) figuring out who owns what, when many people are using the resource. 
B) deciding which individuals will have to decrease their consumption. 
C) that the more users there are, the harder it is to accomplish. 
D) All of these are true. 
A) figuring out who owns what, when many people are using the resource. 
B) deciding which individuals will have to decrease their consumption. 
C) that the more users there are, the harder it is to accomplish. 
D) All of these are true.

Question 12

In many areas, local governments only allow individuals with hunting permits to hunt. This regulation is likely in place because without it: the tragedy of the commons would exist. the hunted animals are nonexcludable goods. the hunted animals are rival goods.

Accepted Answer

A) II only 
B) I and II only 
C) II and III only 
D) I, II, and III 
A) II only 
B) I and II only 
C) II and III only 
D) I, II, and III

A common resource is:

A chocolate chip cookie would be considered:

Without correction, the quantity of a public good that is exchanged will occur where:

Which type of good is rival in consumption, but not excludable?

If the government is supplying a public good, the efficient quantity occurs where the:

One way the government decides how to pay for public goods is by:

A smartphone would be considered:

When we consider solving a free rider problem by changing social norms, it is helpful to remember that:

Which of the following statements describes a similarity between markets for common resources and markets with externalities?

When choosing the right amount of a public good to supply, the government often:

One of the difficulties the government faces when privatizing a common resource is:

In many areas, local governments only allow individuals with hunting permits to hunt. This regulation is likely in place because without it: the tragedy of the commons would exist. the hunted animals are nonexcludable goods. the hunted animals are rival goods.

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

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Exam 19: Public Goods and Common Resources

A common resource is:

A chocolate chip cookie would be considered:

Without correction, the quantity of a public good that is exchanged will occur where:

Which type of good is rival in consumption, but not excludable?

If the government is supplying a public good, the efficient quantity occurs where the:

One way the government decides how to pay for public goods is by:

A smartphone would be considered:

When we consider solving a free rider problem by changing social norms, it is helpful to remember that:

Which of the following statements describes a similarity between markets for common resources and markets with externalities?

When choosing the right amount of a public good to supply, the government often:

One of the difficulties the government faces when privatizing a common resource is:

In many areas, local governments only allow individuals with hunting permits to hunt. This regulation is likely in place because without it: the tragedy of the commons would exist. the hunted animals are nonexcludable goods. the hunted animals are rival goods.

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