Exam 18: Public Economy

Common resources are goods that are:

An example of a private good would be:

Suppose your city has had an increase in crime and the citygovernment decides that more police are needed to patrol atnight. Which of the following funding solutions avoids thefree-rider problem involved with additional police officers?

When a good is rival in consumption:

A solution to the tragedy of the commons is to convertcommon resources to private 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 excludable and nonrival goods fromthe table?

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 common resources from the table?