Exam 11: Public Goods and Common Resources

The Occupational Safety and Health Administration (OSHA)has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of diet soft drinks is 0.0005.The cost of imposing a regulation that would ban the chemical is $18 million.If the value of a human life is equal to $10 million,how many people must the policy affect in order for the benefits to exceed the costs?

Private markets usually provide lighthouses because ship captains have the incentive to navigate using the lighthouse and therefore will pay for the service.

Which city currently charges drivers a "congestion toll" to drive into the heart of the city's financial,legal,and entertainment district?

Which of the following statements concerning Yellowstone National Park is not correct?

San Francisco is considering a plan used in London to reduce congestion on busy streets called

If we can conclude that human life has a finite value,cost-benefit analysis can lead to solutions in which human life is worth less than the cost of a potential project.

Which of the following statements is not correct?

One economically efficient way to eliminate the Tragedy of the Commons is to

One of the least regulated common resources today is

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

Natural monopolies are both

The Occupational Safety and Health Administration (OSHA)has determined that 100 workers are exposed to a hazardous chemical used in the production of diet soft drinks.The cost of imposing a regulation that would ban the chemical is $10 million.OSHA has calculated that each person saved by this regulation has a value equal to $10 million.If the benefits are exactly equal to the costs,what probability is OSHA using to assess the likelihood of a fatality from exposure to this chemical?

The profit motive that stems from private ownership means that elephant populations are best protected as common resources.

The ocean remains one of the largest unregulated resources for each of the following reasons except

If people prefer to live in a society without poverty,then fighting poverty can be thought of as a public good.Why can't the private sector provide sufficient "poverty reduction"?

On hot summer days,electricity-generating capacity is sometimes stretched to the limit.At these times,electric companies may ask people to voluntarily cut back on their use of electricity.An economist would suggest that

In some cases the government can make everyone better off by raising taxes to pay for certain goods that the market fails to provide.

Advocates of antipoverty programs claim that fighting poverty is a public good.

If a road is congested,then use of that road by an additional person would lead to a

London charges drivers driving in "congestion zones" a tax in order to reduce traffic congestion.