Question 1

Which of the following goods is excludable and not rival in consumption?

Accepted Answer

A) a congested toll road 
B) an uncongested toll road 
C) an uncongested nontoll road 
D) a congested nontoll road 
A) a congested toll road 
B) an uncongested toll road 
C) an uncongested nontoll road 
D) a congested nontoll road

Question 2

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

Accepted Answer

A) fiscal analysis. 
B) monetary analysis. 
C) welfare analysis. 
D) cost-benefit analysis. 
A) fiscal analysis. 
B) monetary analysis. 
C) welfare analysis. 
D) cost-benefit analysis.

Question 3

When a good is excludable,

Accepted Answer

A) one person's use of the good diminishes another person's ability to use it. 
B) people can be prevented from using the good. 
C) no more than one person can use the good at the same time. 
D) everyone will be excluded from using the good. 
A) one person's use of the good diminishes another person's ability to use it. 
B) people can be prevented from using the good. 
C) no more than one person can use the good at the same time. 
D) everyone will be excluded from using the good.

Question 4

Which of the following goods is rival in consumption and excludable?

Accepted Answer

A) a slice of pizza 
B) cable TV service 
C) a sunset 
D) national defense 
A) a slice of pizza 
B) cable TV service 
C) a sunset 
D) national defense

Question 5

Because general knowledge is not excludable,

Accepted Answer

A) the government contributes to its production. 
B) the cost generally outweighs the benefit to society. 
C) private markets will not supply any general knowledge to society. 
D) general knowledge cannot be "supplied" to the market by anyone since it is not a product. 
A) the government contributes to its production. 
B) the cost generally outweighs the benefit to society. 
C) private markets will not supply any general knowledge to society. 
D) general knowledge cannot be "supplied" to the market by anyone since it is not a product.

Question 6

A television signal is an example of a good that is

Accepted Answer

A) private. 
B) nonrival in consumption. 
C) social. 
D) nonexcludable in production. 
A) private. 
B) nonrival in consumption. 
C) social. 
D) nonexcludable in production.

Question 7

When property rights are not well established,

Accepted Answer

A) private goods become public goods. 
B) markets fail to allocate resources efficiently. 
C) the distribution of private goods is unfair. 
D) government resources are used inefficiently. 
A) private goods become public goods. 
B) markets fail to allocate resources efficiently. 
C) the distribution of private goods is unfair. 
D) government resources are used inefficiently.

Question 8

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 lobstermen will decide to go lobstering on Point Judith Sound?

Accepted Answer

A) 1 lobsterman 
B) 5 lobstermen 
C) 9 lobstermen 
D) 10 lobstermen 
A) 1 lobsterman 
B) 5 lobstermen 
C) 9 lobstermen 
D) 10 lobstermen

Question 9

Four friends decide to meet at a Chinese restaurant for dinner.They decide that each person will order an item off the menu,and they will share all dishes.They will split the cost of the final bill evenly among each of the people at the table.A Tragedy of the Commons problem is likely for each of the following reasons except

Accepted Answer

A) each person has an incentive to eat as fast as possible since their individual rate of consumption will not affect their individual cost. 
B) there is an externality associated with eating the food on the table. 
C) when one person eats, he may not take into account how his choice affects his friends. 
D) each dish would be both excludable and rival in consumption. 
A) each person has an incentive to eat as fast as possible since their individual rate of consumption will not affect their individual cost. 
B) there is an externality associated with eating the food on the table. 
C) when one person eats, he may not take into account how his choice affects his friends. 
D) each dish would be both excludable and rival in consumption.

Question 10

Private goods are both

Accepted Answer

A) excludable and nonrival in consumption. 
B) nonexcludable and rival in consumption. 
C) excludable and rival in consumption. 
D) nonexcludable and nonrival consumption. 
A) excludable and nonrival in consumption. 
B) nonexcludable and rival in consumption. 
C) excludable and rival in consumption. 
D) nonexcludable and nonrival consumption.

Question 11

A tax on gasoline often reduces road congestion because gasoline

Accepted Answer

A) and driving are complements. 
B) and driving are substitutes. 
C) is a normal good, while driving is an inferior good. 
D) is an inferior good, while driving is a normal good. 
A) and driving are complements. 
B) and driving are substitutes. 
C) is a normal good, while driving is an inferior good. 
D) is an inferior good, while driving is a normal good.

Question 12

Which of the following is a disadvantage of government provision of a public good?

Accepted Answer

A) The government lacks information about what people are willing to pay for the good. 
B) The government does not provide enough of any public good. 
C) The private sector can provide all public goods at a lower cost. 
D) None of the above is a disadvantage. 
A) The government lacks information about what people are willing to pay for the good. 
B) The government does not provide enough of any public good. 
C) The private sector can provide all public goods at a lower cost. 
D) None of the above is a disadvantage.

Question 13

Which of the following statements is not correct?

Accepted Answer

A) Some goods that are often thought of as public goods may be private goods in certain circumstances.For example, a lighthouse that protects a privately owned port may be a private good. 
B) Some goods that are often though of a private goods may be public goods in certain circumstances.For example, a candy bar could be a public good. 
C) Antipoverty programs can be an example of a public good because everyone benefits from living in a society with less poverty. 
D) The government must provide national defense because it is impossible to exclude people from its benefit, and the consumption of national defense is nonrival in consumption. 
A) Some goods that are often thought of as public goods may be private goods in certain circumstances.For example, a lighthouse that protects a privately owned port may be a private good. 
B) Some goods that are often though of a private goods may be public goods in certain circumstances.For example, a candy bar could be a public good. 
C) Antipoverty programs can be an example of a public good because everyone benefits from living in a society with less poverty. 
D) The government must provide national defense because it is impossible to exclude people from its benefit, and the consumption of national defense is nonrival in consumption.

Question 14

In deciding whether a good is a public good,one must determine the

Accepted Answer

A) incomes of those who benefit from the good. 
B) value of the external benefits that accrue to resource owners. 
C) excludability of the good. 
D) All of the above are correct. 
A) incomes of those who benefit from the good. 
B) value of the external benefits that accrue to resource owners. 
C) excludability of the good. 
D) All of the above are correct.

Question 15

An example of a public good would be

Accepted Answer

A) cable TV service. 
B) a tornado siren. 
C) clothing. 
D) the environment. 
A) cable TV service. 
B) a tornado siren. 
C) clothing. 
D) the environment.

Question 16

Excessive fishing occurs because

Accepted Answer

A) each individual fisherman has little incentive to maintain the species for the next year. 
B) fishermen rely on government managers to worry about fish populations. 
C) fishermen are unionized, so they are not concerned with externalities. 
D) fishermen have other marketable skills and do not fear exploitation of fish reserves. 
A) each individual fisherman has little incentive to maintain the species for the next year. 
B) fishermen rely on government managers to worry about fish populations. 
C) fishermen are unionized, so they are not concerned with externalities. 
D) fishermen have other marketable skills and do not fear exploitation of fish reserves.

Question 17

Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?

Accepted Answer

No one owns the wild salmon,while privat

Question 18

Which of the following would not be considered a private good?

Accepted Answer

A) tennis shoes 
B) pizza 
C) french fries 
D) cable TV service 
A) tennis shoes 
B) pizza 
C) french fries 
D) cable TV service

Question 19

Goods that are rival in consumption but not excludable would be considered

Accepted Answer

A) natural monopolies. 
B) common resources. 
C) public goods. 
D) private goods. 
A) natural monopolies. 
B) common resources. 
C) public goods. 
D) private goods.

Question 20

Depending on congestion,national parks can be either a common resource or a public good.

Accepted Answer

A) True 
 B)False

Exam 11: Public Goods and Common Resources

Which of the following goods is excludable and not rival in consumption?

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

When a good is excludable,

Which of the following goods is rival in consumption and excludable?

Because general knowledge is not excludable,

A television signal is an example of a good that is

When property rights are not well established,

Private goods are both

A tax on gasoline often reduces road congestion because gasoline

Which of the following is a disadvantage of government provision of a public good?

Which of the following statements is not correct?

In deciding whether a good is a public good,one must determine the

An example of a public good would be

Excessive fishing occurs because

Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?

Which of the following would not be considered a private good?

Goods that are rival in consumption but not excludable would be considered

Depending on congestion,national parks can be either a common resource or a public good.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Applications

Supply, demand, and Government Policies

Consumers, producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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