Question 1

Which of the following statements best describes the cause of 'overrun and over-trampled' national parks?

Accepted Answer

A) park administrators do not use the best science available to manage park resources 
B) national parks are treated as free goods by their visitors 
C) national parks have never increased park visitation fees 
D) the price of entrance to national parks has kept pace with other forms of recreation 
A) park administrators do not use the best science available to manage park resources 
B) national parks are treated as free goods by their visitors 
C) national parks have never increased park visitation fees 
D) the price of entrance to national parks has kept pace with other forms of recreation

Question 2

If the government allows landowners to kill a number of tigers that roam on their property and sell their remains then:

Accepted Answer

A) poachers will try to kill as many tigers as possible 
B) landowners have more incentive to protect tigers on their land 
C) landowners have more incentive to try to kill as many tigers as possible 
D) poachers will buy land to protect the tigers 
A) poachers will try to kill as many tigers as possible 
B) landowners have more incentive to protect tigers on their land 
C) landowners have more incentive to try to kill as many tigers as possible 
D) poachers will buy land to protect the tigers

Question 3

Why might Ellen decide not to put on a fireworks show she knows many people will enjoy?

Accepted Answer

A) Fireworks are dangerous and thus they cause externalities 
B) Fireworks are a common resource and she is worried they will be overused 
C) Fireworks are a public good and she doesn't want any free-riders 
D) Fireworks are a club good and she hasn't assigned any property rights 
A) Fireworks are dangerous and thus they cause externalities 
B) Fireworks are a common resource and she is worried they will be overused 
C) Fireworks are a public good and she doesn't want any free-riders 
D) Fireworks are a club good and she hasn't assigned any property rights

Question 4

If one thinks that driving privileges should be distributed equally:

Accepted Answer

A) toll roads could be used as long as each car owner had an equal endowment of money to pay for road tolls 
B) people with more expensive cars should be charged a higher toll 
C) there is no solution to the congested road problem 
D) toll roads would offer no solution to the problem of congested roads 
A) toll roads could be used as long as each car owner had an equal endowment of money to pay for road tolls 
B) people with more expensive cars should be charged a higher toll 
C) there is no solution to the congested road problem 
D) toll roads would offer no solution to the problem of congested roads

Question 5

Why do elephants face the threat of extinction while cows do not?

Accepted Answer

A) cattle are a valuable source of income for many people and elephants have no market value 
B) there is a high demand for products that come only from the cow 
C) there are still lots of cattle that roam free, while most elephants are in zoos 
D) cattle are owned by ranchers, while elephants are owned by no-one 
A) cattle are a valuable source of income for many people and elephants have no market value 
B) there is a high demand for products that come only from the cow 
C) there are still lots of cattle that roam free, while most elephants are in zoos 
D) cattle are owned by ranchers, while elephants are owned by no-one

Question 6

Uncongested roads are a good example of a:

Accepted Answer

A) public good 
B) car prices that are too low 
C) common resource 
D) a toll road 
A) public good 
B) car prices that are too low 
C) common resource 
D) a toll road

Question 7

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem, if government does not intervene.

Accepted Answer

A) True 
 B)False

Question 8

Cost-benefit analysis is a simple way of determining the value provision a good brings to society.

Accepted Answer

A) True 
 B)False

Question 9

Prices will always regulate consumption adequately because of the different types of goods in the economy.

Accepted Answer

A) True 
 B)False

Question 10

A consortium of government, local councils, farmers and environmentalists has been created to try and manage the cattle effluent in rural streams.Identify a solution that may manage the resource better and explain how it may improve the water resources and protect them in the future.

Accepted Answer

Conferring property rights to farmers on

Question 11

When one person enjoys the benefit of the legal system, he reduces its benefit to others.

Accepted Answer

A) True 
 B)False

Question 12

Cost-benefit analysis is important in determining the role of government in our economy because:

Accepted Answer

A) the government should provide all goods in which benefits exceed costs 
B) cost-benefit analysis identifies the possible gains to society from government provision of a particular good 
C) markets for private goods are not able to effectively assign costs and benefits 
D) cost-benefit analysis identifies market failure 
A) the government should provide all goods in which benefits exceed costs 
B) cost-benefit analysis identifies the possible gains to society from government provision of a particular good 
C) markets for private goods are not able to effectively assign costs and benefits 
D) cost-benefit analysis identifies market failure

Question 13

Which of the following statements is true of public goods?

Accepted Answer

A) one person's enjoyment of a public good reduces another person's enjoyment of the same good 
B) people cannot be prevented from using a public good 
C) all of the above are true 
D) none of the above is true 
A) one person's enjoyment of a public good reduces another person's enjoyment of the same good 
B) people cannot be prevented from using a public good 
C) all of the above are true 
D) none of the above is true

Question 14

In many countries in Africa, elephants roam freely.Each individual African elephant poacher has:

Accepted Answer

A) a strong incentive to kill as many elephants as he can find 
B) a strong incentive to protect the elephants 
C) the ability to save the elephants 
D) all of the above 
A) a strong incentive to kill as many elephants as he can find 
B) a strong incentive to protect the elephants 
C) the ability to save the elephants 
D) all of the above

Question 15

One of the most pressing concerns associated with the implementation of road congestion pricing policies can be resolved by:

Accepted Answer

A) only charging tolls to those users who earn above a certain income 
B) allowing free access to bicyclists and those who use fuel-efficient cars 
C) employing barcode and debit card technologies to charge users 
D) only charging tolls to visitors 
A) only charging tolls to those users who earn above a certain income 
B) allowing free access to bicyclists and those who use fuel-efficient cars 
C) employing barcode and debit card technologies to charge users 
D) only charging tolls to visitors

Question 16

Some workers are in occupations where the risk of death is higher than others.These risks can be used to evaluate the value of human life.You would expect these workers to:

Accepted Answer

A) require higher rates of pay than other safer jobs using the same skills 
B) require lower rates of pay than other safer jobs using the same skills 
C) have the same rate of pay as other safer jobs using the same skills 
D) all of the above 
A) require higher rates of pay than other safer jobs using the same skills 
B) require lower rates of pay than other safer jobs using the same skills 
C) have the same rate of pay as other safer jobs using the same skills 
D) all of the above

Question 17

In Singapore, the road tolls are charged to drivers according to:

Accepted Answer

A) the time of day when driving occurs 
B) the pollution problem for the day 
C) the particular roads used 
D) all of the above 
A) the time of day when driving occurs 
B) the pollution problem for the day 
C) the particular roads used 
D) all of the above

Question 18

When goods are available free of charge, the market forces that normally allocate resources in our economy are absent.

Accepted Answer

A) True 
 B)False

Question 19

The profit motive that stems from private ownership has proven to be detrimental to elephant populations.

Accepted Answer

A) True 
 B)False

Question 20

Explain the differences between public goods and private goods.

Accepted Answer

Private goods are ex

Exam 11: Public Goods and Common Resources

Which of the following statements best describes the cause of 'overrun and over-trampled' national parks?

If the government allows landowners to kill a number of tigers that roam on their property and sell their remains then:

Why might Ellen decide not to put on a fireworks show she knows many people will enjoy?

If one thinks that driving privileges should be distributed equally:

Why do elephants face the threat of extinction while cows do not?

Uncongested roads are a good example of a:

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem, if government does not intervene.

Cost-benefit analysis is a simple way of determining the value provision a good brings to society.

Prices will always regulate consumption adequately because of the different types of goods in the economy.

A consortium of government, local councils, farmers and environmentalists has been created to try and manage the cattle effluent in rural streams.Identify a solution that may manage the resource better and explain how it may improve the water resources and protect them in the future.

When one person enjoys the benefit of the legal system, he reduces its benefit to others.

Cost-benefit analysis is important in determining the role of government in our economy because:

Which of the following statements is true of public goods?

In many countries in Africa, elephants roam freely.Each individual African elephant poacher has:

One of the most pressing concerns associated with the implementation of road congestion pricing policies can be resolved by:

Some workers are in occupations where the risk of death is higher than others.These risks can be used to evaluate the value of human life.You would expect these workers to:

In Singapore, the road tolls are charged to drivers according to:

When goods are available free of charge, the market forces that normally allocate resources in our economy are absent.

The profit motive that stems from private ownership has proven to be detrimental to elephant populations.

Explain the differences between public goods and private goods.

Ten Lessons From Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand and Government Policies

Consumers, Producers and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Business Strategy and Oligopoly

Competition Policy

The Markets for the Factors of Production

Earnings, Unions and Discrimination

Income Inequity and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment and the Financial System

The Natural Rate of Unemployment

The Monetary System

Inflation: Its Causes and Costs

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Global Financial Crisis of 2008 and Beyond

Five Debates Over Macroeconomic Policy

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