Exam 11: Public Goods and Common Resources.

Because the benefits of basic research are obvious and easy to measure,it is likely that the public sector pays for the right amount and the right kinds of basic research.

Suppose the cost to erect a tornado siren in a small town is $20,000.In addition,suppose the value of a human life is $10 million.By what percentage would the siren need to reduce the risk of a fatality for the benefits of the siren to exceed the costs of the siren?

Elephants are endangered,but cows are not 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 $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 A prefer to hire?

The Tragedy of the Commons

Suppose that policymakers are doing cost-benefit analysis on a proposal to add traffic barriers to divide the flow of traffic in an effort to increase safety on a given highway.Which of the following statements is correct?

National Public Radio would be considered a club good.

Table 11-1 Consider the town of Anywhere with only three residents, Mary, Bill, and Tricia. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park. -Refer to Table 11-1.Suppose the cost to build the park is $33 per acre.How many acres should the park be to maximize total surplus from the park in Anywhere?

If one person's use of a good diminishes another person's enjoyment of it,the good is

Figure 11-1 -Refer to Figure 11-1.For which two boxes is it the case that externalities arise because something of value has no price attached to it?

The enclosure movement in England in the 17ᵗʰ century represented an attempt to transform

Ten friends who love to ski decide to pool their financial resources and equally share the cost of a one-week time-share condominium in Alta,Utah.Suppose that the lift lines at the ski resort become more congested when the ten additional people start to ski.Which of the following statements is not correct?

Phil owns 10 acres of beautiful wooded land.When Phil 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.Phil wants an efficient way to prevent overcrowding at the park,so he should require

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 $100 per day.How many guards should be hired to maximize the total surplus of the four store owners?

Pollution is a

As with many public goods,determining the appropriate level of government support for the production of general knowledge is difficult because

It is common knowledge that many U.S.national parks have become overused.One possible solution to this problem is to

A good that is excludable but not rival is known as a club good.

Three business people meet for lunch at an Indian restaurant.They decide that each person will order an item off the menu,and they will share all dishes.They will split the cost of the final bill evenly among each of the people at the table.When the food is delivered to the table,each person faces incentives similar to the

A free rider problem arrises when