Exam 11: Public Goods and Common Resources

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.The efficient outcome is ________.

An office in the Empire State Building is

A public good is

Which of the following is an example of a pure private good?

A private,competitive market

What is rational ignorance?

-The table above shows the marginal social benefit of fishing in Mediterranean Sea.The marginal private cost of operating a fishing boat is the same for all producers ,$300 per hour.The marginal social cost is twice the marginal private cost.If the government sets a production quota,to have the efficient quantity of fish caught,the quote should equal ________ tons of fish.

Which of the following is an example of the free-rider problem?

The reason that private provision of a public good often leads to inefficiency is because

Which of the following is a correct statement?

It is rational for a voter to be ignorant about an issue unless the

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.Suppose the government assigns individual transferable quotas (ITQ)set to achieve the efficient outcome.The market price of an ITQ is ________ per pound.

Which of the following is the best example of a public good?

Suppose a public good is provided in an economy with only two consumers,Popeye and Captain Hook.If Popeye values the public good at $4,000 per year,and Captain Hook values it at $3,000 per year,the economy's marginal benefit of the public good per year is

To achieve the efficient level of national defense,

Which of the following applies to the tragedy of the commons and a common resource? i.In the absence of government action,there are no incentives to prevent the overuse of the common resource. ii.When consumers take account of the marginal social benefit and marginal cost,overuse of the common resource occurs. iii.Even with government action,it is impossible to achieve the efficient level of use of a common resource.

When producers are hard to monitor and property rights are too costly,________ are an effective method to achieve efficient use of a ________.

Suppose that satellites are publicly provided.The voters are rationally ignorant,while the Defense Ministry is well informed.Using the figure above,which of the following quantities of satellites is most likely to be provided?

Suppose the marginal cost of the fourth unit of a public good is $20.If Mark and Judy are the only members of society,and they are willing to pay $10 and $11,respectively,for the fourth unit of the good,then the efficient quantity is

The principle of minimum differentiation describes a tendency of competitors to