Exam 18: Public Economy

Asteroid deflection is a good that would be profitable for aninsurance company to provide.

(Table: Types of Goods) Refer to the table. Which of thefollowing statements is true?

Uncongested, non-toll roads are a good example of a:

The sun has features of a:

A rival good is one where:

In which of the cases can you identify the potential for a free-rider problem?

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. This situation likelyled to a(n):

A public good is:

A major difference between a private good and a public goodis that:

Goods that are excludable include both:

Private goods can be provided by competitive markets becausethey are:

Compared to private goods, the free market would ________public goods.

Which of the following methods would help to produceoptimal amounts of public goods?

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 and rival goods fromthe table?

Nonrival private goods are likely to be:

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 rival, excludable goods from the table?

A solution to the tragedy of the commons is to convertcommon resources to public goods.

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

A free rider is a person who:

Advertising is an efficient solution to the problem ofnonexcludability and nonrivalry.