Exam 18: Public Economy

Which of the following solutions for public goods fundingavoids both the problems of "forced riders" and "free riders"?

Suppose that a private-sector firm produces two goods: Good 1 is a private good and Good 2 is a public good. Which of thefollowing statements is true?

A person ________ be cheaply prevented from using nationaldefense, a(n) ________ good.

Which of the following scenarios best describes a tragedy ofthe commons problem?

Theoretically when property rights are difficult to establish,multi-country agreements could help to solve the tragedy ofthe commons, but it has not been possible to establish any suchagreement to date.

Which of the following explains why it is difficult to determinethe optimal quantity of public goods that the governmentshould produce?

A good cannot be private at the same time that it isnonexcludable.

Which of the following statements is TRUE? I. In order for society to have a sufficient level of nationaldefense, the government must tax the public to raise funds fora standing army II.For every 100 people that use a public good, approximately 500 people are prevented from using it III. People do not have an incentive to voluntarily pay fornonexcludable goods.

Which of the following goods is not rival and not excludable?

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 private goods from the table?

Some animals are going extinct because of a lack of propertyrights over these animals.

The tragedy of the commons applies especially strongly toresources like fish, forests, and agricultural land because:

Which of the following has been a way typically used to solvetragedy of the commons problems?

Cable TV is an example of a common resource.

A forced rider is someone who:

If one person's use of a good prevents another person's abilityto use it, then the good is:

An example of a common resource would be:

A good is excludable if:

During the Middle Ages, many villages had areas reserved forfamilies to take their cows or sheep to graze. All families werewelcome to use this land without charge. The land for grazingcan be characterized as a:

Which of the following countries implements individualtransferable quotas (ITQs) in which owners have the right tocatch a certain tonnage of fish?