Exam 11: Public Goods and Common Resources.

On holiday weekends thousands of people picnic in state parks.Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero.Suppose that the Minnesota State Park Service institutes a variable fee structure.On weekdays when the picnic areas get little use,the fee is zero.On normal weekends,the fee is $8 per person.On holiday weekends,the fee is $14 per person.The fee system corrects a problem known as the

At the local park there is a playground that anyone may use.There is rarely anyone using the playground,so children who use the playground receive full enjoyment from its use.The playground is

Private goods are both

The failure of markets to adequately protect the environment can viewed either as a problem of

Which of the following would be considered a private good?

When free riders are present in a market,the market generally fails to provide the efficient outcome.

If we can conclude that human life has a finite value,cost-benefit analysis can lead to solutions in which human life is worth less than the cost of a potential project.

Government policy can potentially raise economic well-being

A cost-benefit analysis of a highway is difficult to conduct because analysts

When a good is excludable,

A town engineer comes to the city council with a proposal to install a traffic light at a certain intersection that currently has a stop sign.The benefit of the traffic light is increased safety because the light will reduce the incidence of fatal traffic accidents by 50 percent per year.Which of the following statements is correct?

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

In which of the following examples are property rights not well established?

A local park filled with picnickers is

Knowledge is an example of a

The free-rider problem exists with

The national defense of the United States is not rival because

Table 11-5 A small strip mall contains four retail stores, and crime has recently been on the increase in the neighborhood of the strip mall. The owners of the four stores - Stores A, B, C, and D - are considering contributing to a pool of money that will be used to hire up to 4 security guards. The table represents their willingness to pay, that is, the maximum amount that each store owner is willing to contribute, per day, to hire each security guard. -Refer to Table 11-5.Suppose the cost to hire each guard is $100 per day and the 4 store owners have agreed to split the costs of hiring guards equally.Which store owner(s)would be opposed to hiring any guards?

On holiday weekends thousands of people picnic in state parks.Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero.An overcrowded picnic area is an example of

Consider a public road that anyone is allowed to drive on.If the road is often congested,the road would be considered a