Exam 11: Public Goods and Common Resources

The figure above shows the marginal benefit curve (MB) and marginal cost curve (MC) of surveillance satellites that provide national defense services. -Using the figure above,suppose there are two political parties,the Hawks and the Doves,which agree on all issues except for the quantity of defense satellites.The Hawks want 300 satellites and the Doves want 100 satellites.The voters are well informed and know what is best for them.The parties run a voter survey and discover the marginal benefit curve (MB).They also know the marginal cost curve (MC).What quantity of satellites will most likely result from this political process?

For a common resource,efficiency requires that the ________ equals the ________.

"The principle of increasing marginal cost does not apply to public goods." Is this statement correct or not?

Protection of rivers in Idaho is a public good.If the marginal cost of protecting rivers in Idaho exceeds the marginal benefit of river protection,is there more than,less than,or the efficient amount of river protection taking place?

-Paul and Paula are the only members of society.The table above gives their marginal benefits from missile gunboats,a public good.Suppose the marginal cost of a missile gunboat is $8 million.What is the efficient quantity of missile gunboats?

Which of the following goods is best described as nonexcludable?

The concept of rational ignorance is defined as

A private good is defined as a good or service

A natural monopoly,such as the Internet,is

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.The market equilibrium with no government intervention is ________.

For a common resource,the equilibrium with no government intervention is such that ________ equals ________.

If you can prevent someone from consuming a good,that good is called

When describing goods and services,what is meant by the terms "rival" and "nonrival?" Are private goods rival or nonrival? Are public goods rival or nonrival? Are common resources rival or nonrival?

-The table above shows Anita and Steve's marginal benefits for the annual 4ᵗʰ of July fireworks show at City Park.If Anita and Steve are the only two people in the economy,what is the economy's marginal benefit from the 18ᵗʰ minute of fireworks?

A good is a private good if

A good is nonexcludable if

As more of a public good is produced,the marginal benefit of each additional unit ________ and as more of a private good is produced,the marginal benefit of each additional unit ________.

The efficient quantity of a public good is

For any individual consumer,free-riding is

How does the government determine the quota amount that will produce an efficient use of a common resource?