Exam 11: Public Goods and Common Resources.

Government agencies,such as the National Science Foundation,subsidize basic research because in the absence of a subsidy too little research would be conducted.

All goods that are excludable are also rival in consumption,but not all goods that are rival in consumption are excludable.

Who among the following is a free rider?

A study that compares the costs and benefits to society of providing a public good is called externality analysis.

Markets do not ensure that the air we breathe is clean because

Aristotle writes,"What is common to many is taken least care of,for all men have greater regard for what is their own than for what they possess in common with others." In this statement,Aristotle is referring to the free-rider problem that occurs when a person receives the benefit of a good without paying for it.

A free rider is a person who pays for a good but does not receive the benefit of it.

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 installing the streetlights equally.To maximize their own surplus,how many streetlights would the Walker's like the town to install?

The provision of public goods gives rise to

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.Which of the following statements about the aquifer is correct?

The commercial value of ivory is a threat to the elephant,but the commercial value of beef is a guardian of the cow.This is because

A free rider is a person who

A textbook is a

For private goods allocated in markets,

Goods that are rival in consumption and excludable would be considered

An economics professor,upset about the rising cost of textbooks,proposed that his department purchase 50 copies of a statistics book so the students in the statistics class would not have to purchase their own books but rather could borrow a book for the semester and then return it for the next class to use.Which of the following strategies would not prevent a common resource problem with the textbooks?

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 individual guard is $110 per day and the 4 store owners have agreed to split the costs of hiring guards equally.Which of the following statements is correct?

The Tragedy of the Commons describes

National defense is provided by the government because

Which of the following is not a public good?