Exam 11: Public Goods and Common Resources

Which of the following would be considered a private good?

If people can be prevented from using it, the good is:

When one person uses a common resource, she diminishes other people's enjoyment of it.This is an example of:

Private ownership of a common resource works well when the resource is scarce.

Government agencies subsidise basic research because:

One person's use of common resources does not reduce the enjoyment other people receive from the resource.

It is common knowledge that many national parks have become overused.One possible solution to this problem is to:

Tim works for the government and is implementing a new government policy to set up spacious yoga studios at all state primary schools.The general public will be able to attend classes in the studios but Tim is still is trying to decide on a pricing structure.What pricing structure should Tim suggest the government adopt for the studios and why?

A natural monopoly is:

A good that is not subject to property rights is often:

The free-rider problem is a problem of:

A ship's captain who doesn't want to pay for a lighthouse service, must derive no benefit from the lighthouse.

Even economists who advocate small government agree that national defence is a good that the government should provide.

If Jack and Joe are the only two fishermen in town and neither is bothered by the other's fishing, the fishing lake is not a common resource.

Tolls can be used to alter people's incentives to drive during rush hour.

In the 1950s in Australia, estuarine crocodiles were hunted almost to extinction for their leather.This means the crocodiles were a:

Cost-benefit analysis always fails to include free goods like clean air as benefits.

The Australian patent system:

A common theme among examples of market failure is that:

Only goods that are produced in markets have value to society.