Exam 11: Public Goods and Common Resources

On holiday weekends thousands of people hike on national park hiking trails.Some trails become so overcrowded the benefit or value of hiking diminishes to zero.Suppose that the National Park Service institutes a variable fee structure.On weekdays when the trails get little use,the fee is zero.On normal weekends,the fee is $15 per person.On holiday weekends,the fee is $35 per person.The fee system is an example of a

The government provides public goods because

The Tragedy of the Commons occurs because

Some economists estimate the value of human life by analyzing the risks that people are voluntarily willing to take and the compensation they require for those risks.Which of the following is an example of a career that economists would study?

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

Excludability is the property of a good whereby

A lighthouse is typically considered to be a public good because

When the value of a human life is calculated according to the economic contribution a person makes to society (as reflected in her income-earning potential),the troubling implication is that

Which of the following quotations illustrates the Tragedy of the Commons?

Suppose that everyone prefers to live in a society without poverty.Further suppose that some private charities are successful in reducing poverty.People who do not contribute to the charities

The Tragedy of the Commons describes

Common resources are both

Who among the following is a free rider?

If Toby and Pete are the only two fishermen in town and neither is bothered by the other's fishing,the lake they fish in is not a common resource.

A cheeseburger is

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Which of the following would be considered a common resource?

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.How many lobsters will be caught per day on Point Judith sound?

An example of a common resource would be

Which parable describes the problem of wild animals that are hunted to the point of extinction?