Exam 11: Public Goods and Common Resources.

A good is excludable if

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 $90.How many trees should be planted to maximize the total surplus of the four homeowners?

For most goods in an economy,the signal that guides the decisions of buyers and sellers is

If everyone benefits from helping the poor,

Pollution is a negative externality,but it is not appropriate to view the problem of pollution as a common-resource problem.

A New York legislator wanted to create a deposit on cigarettes butts.If implemented,people would have the incentive to (1)not toss cigarette butts onto public streets and sidewalks,and (2)pick butts up to redeem them for the cash.The degradation of the environment from littered cigarette butts is a

Private decisions about consumption of common resources and production of public goods usually lead to an

The sign on a church in your neighborhood reads "All are welcome at Sunday Service." Because the church has limited seating and is usually full,the Sunday Service is

A free-rider problem exists for any good that is not

Imagine a 2,000-acre park with picnic benches,trees,and a pond.Suppose it is publicly owned,and people are invited to enjoy its beauty.When the weather is nice,it is difficult to find parking,and the trash cans overflow with food wrappers on summer afternoons.Otherwise,it is a great place.The park is a common resource because

Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible.In this case,the market for this good will likely

Which of the following represents a potential solution to the problem of environmental pollution?

Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws.Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws,we can likely conclude that

Which of the following would not be considered a private good?

What causes the Tragedy of the Commons? (i)Social and private incentives differ. (ii)Common resources are not rival in consumption and are not excludable. (iii)Common resources are not excludable but are rival in consumption.

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 $120 per day and the 4 store owners have agreed to split the costs of hiring guards equally.How many guards would the owner of Store C prefer to hire?

Reggie owns 3 acres of beautiful wooded land.When Reggie decides to move to be closer to his grandchildren,he donates the land to the state with the understanding that the land will be used as a state park.This state park is large enough that it is not congested.It is an example of a good that is

Private markets usually fail to provide lighthouses because

Excludability is the property of a good whereby

Economists argue that we can calculate the value of a human life by observing voluntary risks that people take every day.