Question 1

When someone receives the benefits of cable TV service, thebenefit others can receive from this service gets reduced.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following conditions would turn some people intoforced riders?

Accepted Answer

A) People who must contribute to the public good because their benefit from the public good is high. 
B) People who must contribute to the public good even though they will not benefit from the public good.(True Answer
)Correct 
C) People who are not required to contribute to the public good if they will not receive any benefit from it. 
D) None of the answers is correct. 
A) People who must contribute to the public good because their benefit from the public good is high. 
B) People who must contribute to the public good even though they will not benefit from the public good.(True Answer
)Correct 
C) People who are not required to contribute to the public good if they will not receive any benefit from it. 
D) None of the answers is correct.

Question 3

Tradeable allowances may effectively be used to solve thetragedy of the commons problem.

Accepted Answer

A) True 
 B)False

Question 4

Table: Example GoodsA WatermelonA LighthouseSmog ReductionOnline Video GamesCable Internet ServiceNational DefenseA Private BeachA Public BeachA PencilSoup Kitchen MealsA ChairToll HighwaysPublic RoadsReference: Ref 18-2(Table: Example Goods) Refer to the table. Which of thefollowing contains only nonexcludable, nonrival goods fromthe table?

Accepted Answer

A) national defense, a lighthouse, smog reduction (True Answer )Correct 
B) a public beaches, soup kitchen meals, public roads 
C) online video games, a public beach, national defense, a lighthouse 
D) a public beach, a lighthouse, toll highways, public roads 
A) national defense, a lighthouse, smog reduction (True Answer )Correct 
B) a public beaches, soup kitchen meals, public roads 
C) online video games, a public beach, national defense, a lighthouse 
D) a public beach, a lighthouse, toll highways, public roads

Question 5

Thanks to advertising, the efficient price for public radioservice is zero.

Accepted Answer

A) True 
 B)False

Question 6

Command and control methods are market-based methods tosolving the problem of over-exploitation of common resources.

Accepted Answer

A) True 
 B)False

Question 7

Tuna in the ocean is a common resource because:

Accepted Answer

A) it is difficult to prevent people from fishing in the ocean and every time someone catches tuna there is less tuna for someone
Else. 
B) all tuna are identical (i.e., a homogenous good) and sold in competitive markets. 
C) there is an abundance of tuna and no one fisherman can affect the market equilibrium output. 
D) None of the answers is correct. 
A) it is difficult to prevent people from fishing in the ocean and every time someone catches tuna there is less tuna for someone
Else. 
B) all tuna are identical (i.e., a homogenous good) and sold in competitive markets. 
C) there is an abundance of tuna and no one fisherman can affect the market equilibrium output. 
D) None of the answers is correct.

Question 8

Tuna are not public goods since they are nonrival butexcludable.

Accepted Answer

A) True 
 B)False

Question 9

Free riders are people who:

Accepted Answer

A) enjoy public goods without paying for them.(True Answer )Correct 
B) pay for public goods but do not end up enjoying them. 
C) pay for both private and public goods. 
D) ride public transportation without paying. 
A) enjoy public goods without paying for them.(True Answer )Correct 
B) pay for public goods but do not end up enjoying them. 
C) pay for both private and public goods. 
D) ride public transportation without paying.

Question 10

The city government taxes its residents to pay for mosquitocontrol. Betty is not happy about paying the tax, formosquitoes never bite her. Betty is a:

Accepted Answer

A) free rider. 
B) forced rider. 
C) taxed rider. 
D) lonesome rider. 
A) free rider. 
B) forced rider. 
C) taxed rider. 
D) lonesome rider.

Question 11

Private goods:
I. are excludable
II.can be priced
III. are rival in consumption.

Accepted Answer

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

Question 12

Hamburgers are example of goods that are:

Accepted Answer

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

Question 13

A fisherman has an incentive to overfish because catching lessfish today doesn't increase the number of fish he can catch inthe future.

Accepted Answer

A) True 
 B)False

Question 14

Suppose that a firm plans to provide defense against asteroidsstriking the earth. Which of the following is TRUE?

Accepted Answer

A) Most people will find it in their self-interest to pay the firm to protect the earth. 
B) Asteroid protection is a private good, so the firm will make a lot of profit. 
C) In case of an earth bound asteroid, the firm will not protect people who refused to pay for asteroid defense. 
D) Most people will not pay a firm for asteroid defense.(True Answer )Correct 
A) Most people will find it in their self-interest to pay the firm to protect the earth. 
B) Asteroid protection is a private good, so the firm will make a lot of profit. 
C) In case of an earth bound asteroid, the firm will not protect people who refused to pay for asteroid defense. 
D) Most people will not pay a firm for asteroid defense.(True Answer )Correct

Question 15

A free rider is someone who receives the benefit of a good andavoids paying for it.

Accepted Answer

A) True 
 B)False

Question 16

Creating property rights for southern bluefin tuna is:

Accepted Answer

A) easy because southern bluefin tuna don't travel far from shore. 
B) easy because southern bluefin tuna is a common resource. 
C) difficult because southern bluefin tuna travel throughout the Pacific ocean. 
D) difficult because only one country fishes for southern bluefin tuna. 
A) easy because southern bluefin tuna don't travel far from shore. 
B) easy because southern bluefin tuna is a common resource. 
C) difficult because southern bluefin tuna travel throughout the Pacific ocean. 
D) difficult because only one country fishes for southern bluefin tuna.

Question 17

A fireworks display is an example of a good that is excludable.

Accepted Answer

A) True 
 B)False

Question 18

Cable TV is nonrival and excludable. Contact lenses are rivaland excludable. Public goods are nonrival and nonexcludable.Nonrival private goods are excludable.

Accepted Answer

A) True 
 B)False

Question 19

Private goods are both:

Accepted Answer

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

Question 20

The tragedy of the commons occurs when a good is:

Accepted Answer

A) rival in consumption and excludable. 
B) rival in consumption and not excludable.(True Answer )Correct 
C) not rival in consumption and excludable. 
D) neither rival in consumption nor excludable. 
A) rival in consumption and excludable. 
B) rival in consumption and not excludable.(True Answer )Correct 
C) not rival in consumption and excludable. 
D) neither rival in consumption nor excludable.

When someone receives the benefits of cable TV service, thebenefit others can receive from this service gets reduced.

Which of the following conditions would turn some people intoforced riders?

Tradeable allowances may effectively be used to solve thetragedy of the commons problem.

Thanks to advertising, the efficient price for public radioservice is zero.

Command and control methods are market-based methods tosolving the problem of over-exploitation of common resources.

Tuna in the ocean is a common resource because:

Tuna are not public goods since they are nonrival butexcludable.

Free riders are people who:

The city government taxes its residents to pay for mosquitocontrol. Betty is not happy about paying the tax, formosquitoes never bite her. Betty is a:

Private goods: I. are excludable II.can be priced III. are rival in consumption.

Hamburgers are example of goods that are:

A fisherman has an incentive to overfish because catching lessfish today doesn't increase the number of fish he can catch inthe future.

Suppose that a firm plans to provide defense against asteroidsstriking the earth. Which of the following is TRUE?

A free rider is someone who receives the benefit of a good andavoids paying for it.

Creating property rights for southern bluefin tuna is:

A fireworks display is an example of a good that is excludable.

Cable TV is nonrival and excludable. Contact lenses are rivaland excludable. Public goods are nonrival and nonexcludable.Nonrival private goods are excludable.

Private goods are both:

The tragedy of the commons occurs when a good is:

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Production, Costs, and Industry Structure

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Labor Markets and Income

Poverty and Economic Inequality

Information, Risk, and Insurance

Financial Markets

International Trade

Globalization and Protectionism

Consumer Utility and Optimization

Filters

Exam 18: Public Economy

When someone receives the benefits of cable TV service, thebenefit others can receive from this service gets reduced.

Which of the following conditions would turn some people intoforced riders?

Tradeable allowances may effectively be used to solve thetragedy of the commons problem.

Thanks to advertising, the efficient price for public radioservice is zero.

Command and control methods are market-based methods tosolving the problem of over-exploitation of common resources.

Tuna in the ocean is a common resource because:

Tuna are not public goods since they are nonrival butexcludable.

Free riders are people who:

The city government taxes its residents to pay for mosquitocontrol. Betty is not happy about paying the tax, formosquitoes never bite her. Betty is a:

Private goods: I. are excludable II.can be priced III. are rival in consumption.

Hamburgers are example of goods that are:

A fisherman has an incentive to overfish because catching lessfish today doesn't increase the number of fish he can catch inthe future.

Suppose that a firm plans to provide defense against asteroidsstriking the earth. Which of the following is TRUE?

A free rider is someone who receives the benefit of a good andavoids paying for it.

Creating property rights for southern bluefin tuna is:

A fireworks display is an example of a good that is excludable.

Cable TV is nonrival and excludable. Contact lenses are rivaland excludable. Public goods are nonrival and nonexcludable.Nonrival private goods are excludable.

Private goods are both:

The tragedy of the commons occurs when a good is:

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Production, Costs, and Industry Structure

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Labor Markets and Income

Poverty and Economic Inequality

Information, Risk, and Insurance

Financial Markets

International Trade

Globalization and Protectionism

Consumer Utility and Optimization

Filters