Exam 11: Public Goods and Common Resources.

Free goods are usually efficiently allocated without government intervention.

If a road is congested,then use of that road by an additional person would lead to a

Excessive fishing occurs because

Table 11-2 Consider a small town with only three families, the Johnson family, the Marshall family, and the Walker family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight. -Refer to Table 11-2.Suppose the cost to install each streetlight is $450 and the families have agreed to split the cost of the streetlights equally.If the families vote to determine the number of streetlights to install,basing their decision solely on their own willingness to pay (and trying to maximize their own surplus),what is the greatest number of streetlights for which the majority of families would vote "yes?"

It should not be surprising if the public sector fails to pay for the right amount or right kinds of basic research because

Which of the following is an example of general knowledge,as opposed to specific knowledge that can be patented?

Table 11-4 There are four homes along Belmont Circle, which surrounds a small plot of land. The land currently has no trees, and the 4 homeowners -- Adams, Benitez, Chen, and Davis -- are considering the idea of contributing to a pool of money that will be used to plant up to 4 trees. The table represents their willingness to pay, that is, the maximum amount that each homeowner is willing to contribute toward each tree. -Refer to Table 11-4.Suppose the cost to plant each tree is $300.How many trees should be planted to maximize the total surplus of the four homeowners?

Some goods,such as lighthouses,can switch between being public goods and being private goods depending on the circumstances.

Place each of the following in the correct location in the table. a. Congested toll roads b. Knowledge c. Fish in the ocean d. National defense e. Congested nontoll roads f. Cable TV g. The environment h. Fire protection i. Ice-cream cones j. Uncongested toll roads k. Clothing l. Uncongested nontoll roads

Many species of animals are common resources,and many must be protected by law to keep them from extinction.Why is the cow not one of these endangered species even though there is such a high demand for beef?

One possible solution to the problem of protecting a common resource is to convert that resource to a private good.

On hot summer days,electricity-generating capacity is sometimes stretched to the limit.At these times,electric companies may ask people to voluntarily cut back on their use of electricity.An economist would suggest that

A lighthouse is typically considered to be a public good because

Each of the following would be considered a common resource except

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

Governments that chose to make endangered elephants private goods have met with more success protecting elephants than governments that chose to make killing elephants illegal.

Which of the following goods is rival and excludable?

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

Market failure associated with the free-rider problem is a result of

The pollution market failure is an example of the free rider problem.