Exam 11: Public Goods and Common Resources

The town of Sointenly does not have any public snow-plows.Anyone who wants his street cleared of snow must hire a private snow-plow company,which charges $75 per street.Curly,Larry and Moe all live on a dead-end street;Curly lives at the very end.Each one values snow removal at $50.At present,the snow is never cleared from the street.We can conclude that

Markets may fail to allocate resources efficiently when property rights are not well established.

Which of the following statements best describes the cause of "overrun and overtrampled" national parks?

If the local government in Richmond,Missouri,decides to put on a public fireworks display,the display would be

Determining the appropriate level of government support for expanding general knowledge

Which of the following statements is correct?

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

Which of the following statements is not correct?

A toll on a congested road is in essence

Table 11-2 There are no lobstering restrictions on Point Judith Sound, RI. A lobsterman on Point Judith Sound can catch 100 lobsters per day, provided he has the sound to himself. Two lobstermen can catch 95 lobsters apiece per day, and three can catch 90 apiece per day. Other numbers are given by the table: The opportunity cost of a day on Point Judith Sound is 25 lobsters per lobsterman. That is, the alternative activity is as valuable as 25 lobsters. -Refer to Table 11-2.In terms of lobsters,what is the net social gain per day of lobstering?

Because of the free-rider problem,

National defense is a classic example of a public good because

A view of a spectacular sunset along a private beach is an example of a

Which of the following statements is true of the tax on gasoline?

What causes the Tragedy of the Commons? (i) Social and private incentives differ. (ii) Common resources are nonrival in consumption and nonexclusive. (iii) Common resources are nonexclusive but rival in consumption.

Markets fail to allocate resources efficiently when

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

Because elephants roam freely in many countries in Africa,each individual African elephant poacher has

The fish in the ocean are an example of a

The privately-owned school system in Smalltown has a virtually unlimited capacity.It accepts all applicants and operates on both tuition and private donations.Although every resident places value on having an educated community,the school's revenues have suffered lately due to a large decline in private donations from the elderly population.Since the benefit that each citizen receives from having an educated community is a public good,which of the following would not be correct?