Question 1

How can the free-rider problem become worse

Accepted Answer

A) if the government refuses to provide the product 
B) if the number of beneficiaries is large 
C) if private markets can provide the rival in consumption good 
D) if the number of provisions is small 
A) if the government refuses to provide the product 
B) if the number of beneficiaries is large 
C) if private markets can provide the rival in consumption good 
D) if the number of provisions is small

Question 2

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

Accepted Answer

A) True 
 B)False

Question 3

The citizens of Smalltown,Canada like seeing fireworks on Canada Day.Each of the town's 1000 residents places a $5 value on the experience.The cost of putting on a fireworks display is $1000.Should there be a fireworks display
 What is socially optimal
 Would the private market result in a fireworks display

Accepted Answer

Because the benefits of the fireworks di

Question 4

The local fire department wants to buy some new equipment at a cost of $2 million.If a human life is worth $10 million,the equipment is worth buying if it reduces the risk of someone dying in a fire over the life of the equipment by at least which of the following

Accepted Answer

A) 1 percentage point 
B) 2 percentage points 
C) 7 percentage points 
D) 10 percentage points 
A) 1 percentage point 
B) 2 percentage points 
C) 7 percentage points 
D) 10 percentage points

Question 5

What have Canadian studies shown is the approximate value of a statistical life

Accepted Answer

A) under $1 million 
B) $1 million to $3 million 
C) $3 million to $12 million 
D) over $15 million 
A) under $1 million 
B) $1 million to $3 million 
C) $3 million to $12 million 
D) over $15 million

Question 6

The government developed the patent system so that private inventors could make a reasonable profit from their own inventions.

Accepted Answer

A) True 
 B)False

Question 7

What can we do to deal with the externalities associated with public goods and common resources

Accepted Answer

A) Private markets will lead to an efficient allocation of resources. 
B) Government intervention can potentially raise economic well-being. 
C) Private markets will correct for the gain or loss to consumer surplus. 
D) Government intervention can completely eliminate the free-rider problem. 
A) Private markets will lead to an efficient allocation of resources. 
B) Government intervention can potentially raise economic well-being. 
C) Private markets will correct for the gain or loss to consumer surplus. 
D) Government intervention can completely eliminate the free-rider problem.

Question 8

What are both public goods and common resources

Accepted Answer

A) nonrival in consumption 
B) both nonexcludable and nonrival in consumption 
C) excludable 
D) nonexcludable 
A) nonrival in consumption 
B) both nonexcludable and nonrival in consumption 
C) excludable 
D) nonexcludable

Question 9

One person's use of common resources does not reduce the enjoyment other people receive from the resource.

Accepted Answer

A) True 
 B)False

Question 10

You are the mayor of a small town with 2000 residents.The head of your economic development agency recently conducted a survey in which the 2000 residents said that a public concert in the centre of town would be worth $20 to each of them.Since it costs only $5000 to hold the concert,you organized and held the concert,which everyone in town enjoyed.But when you asked for donations to pay for the concert,you only collected $30 in total.What do you know

Accepted Answer

A) The survey certainly overstated how much the concert was worth to each resident. 
B) From the standpoint of total costs and benefits, the cost of the concert certainly exceeded the benefit. 
C) The concert was an example of the Tragedy of the Commons. 
D) Residents of the town were probably free riders. 
A) The survey certainly overstated how much the concert was worth to each resident. 
B) From the standpoint of total costs and benefits, the cost of the concert certainly exceeded the benefit. 
C) The concert was an example of the Tragedy of the Commons. 
D) Residents of the town were probably free riders.

Question 11

In an economy,when goods do not have a price,who or what primarily ensures that the good is produced

Accepted Answer

A) entrepreneurs 
B) the government 
C) charities 
D) individual citizens 
A) entrepreneurs 
B) the government 
C) charities 
D) individual citizens

Question 12

What,in essence,is a toll on congested roads

Accepted Answer

A) an interprovincial highway tax 
B) a Department of Motor Vehicles tax 
C) a gasoline tax 
D) a corrective tax 
A) an interprovincial highway tax 
B) a Department of Motor Vehicles tax 
C) a gasoline tax 
D) a corrective tax

Question 13

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.If the private market quantity of education is below the socially desirable quantity,how can Smalltown remedy its problem

Accepted Answer

A) by having the local government tax local citizens in order to subsidize education 
B) by increasing tuition to compensate for the decrease in donations 
C) by increasing teacher wages 
D) by lowering enrolment 
A) by having the local government tax local citizens in order to subsidize education 
B) by increasing tuition to compensate for the decrease in donations 
C) by increasing teacher wages 
D) by lowering enrolment

Question 14

For the government to provide a product with tax revenue,what must be the case

Accepted Answer

A) The total cost must exceed the total benefit. 
B) The government must be able to produce the product cheaper than the private market could. 
C) The total benefit must exceed the total cost. 
D) The marginal benefit must exceed the marginal cost. 
A) The total cost must exceed the total benefit. 
B) The government must be able to produce the product cheaper than the private market could. 
C) The total benefit must exceed the total cost. 
D) The marginal benefit must exceed the marginal cost.

Question 15

If one person's use of a good diminishes another person's enjoyment of it,how is the good described

Accepted Answer

A) rival in consumption 
B) nonexcludable 
C) normal 
D) exhaustible 
A) rival in consumption 
B) nonexcludable 
C) normal 
D) exhaustible

Question 16

What is one way for the government to practically address the problem of road congestion

Accepted Answer

A) by only charging tolls to those users who earn above a certain income 
B) by allowing free access to bicyclists and those who use fuel-efficient cars 
C) by employing cameras and transponders to toll vehicles automatically 
D) by only charging tolls to visitors 
A) by only charging tolls to those users who earn above a certain income 
B) by allowing free access to bicyclists and those who use fuel-efficient cars 
C) by employing cameras and transponders to toll vehicles automatically 
D) by only charging tolls to visitors

Question 17

Why are proposals to use road tolls in an effort to reduce traffic congestion often rejected by the public

Accepted Answer

A) There is no longer sufficient government intervention. 
B) They allow the rich to drive those roads more than the poor. 
C) They tax only those who choose to drive on the toll roads. 
D) They are too expensive to maintain. 
A) There is no longer sufficient government intervention. 
B) They allow the rich to drive those roads more than the poor. 
C) They tax only those who choose to drive on the toll roads. 
D) They are too expensive to maintain.

Question 18

There are no goods in this day and age that can be consumed without paying for them.

Accepted Answer

A) True 
 B)False

Question 19

When one person enjoys the benefit of national defence,he or she reduces the benefit to others.

Accepted Answer

A) True 
 B)False

Question 20

The Arkell Spring Grounds is a high yielding bedrock aquifer that produces numerous fresh water springs along the Eramosa River northeast of the village of Arkell.Any farmer with land above the aquifer can at present pump water out of it.Using economic terms,what is the aquifer

Accepted Answer

A) The aquifer is a public good that must be publicly owned to be used efficiently. 
B) The aquifer is a private good that must be privately owned to be used efficiently. 
C) The aquifer is a common property resource that will be overused if nobody owns it. 
D) The aquifer is a club good that should be left as it is. 
A) The aquifer is a public good that must be publicly owned to be used efficiently. 
B) The aquifer is a private good that must be privately owned to be used efficiently. 
C) The aquifer is a common property resource that will be overused if nobody owns it. 
D) The aquifer is a club good that should be left as it is.

How can the free-rider problem become worse

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

The local fire department wants to buy some new equipment at a cost of $2 million.If a human life is worth $10 million,the equipment is worth buying if it reduces the risk of someone dying in a fire over the life of the equipment by at least which of the following

What have Canadian studies shown is the approximate value of a statistical life

The government developed the patent system so that private inventors could make a reasonable profit from their own inventions.

What can we do to deal with the externalities associated with public goods and common resources

What are both public goods and common resources

One person's use of common resources does not reduce the enjoyment other people receive from the resource.

In an economy,when goods do not have a price,who or what primarily ensures that the good is produced

What,in essence,is a toll on congested roads

For the government to provide a product with tax revenue,what must be the case

If one person's use of a good diminishes another person's enjoyment of it,how is the good described

What is one way for the government to practically address the problem of road congestion

Why are proposals to use road tolls in an effort to reduce traffic congestion often rejected by the public

There are no goods in this day and age that can be consumed without paying for them.

When one person enjoys the benefit of national defence,he or she reduces the benefit to others.

The Arkell Spring Grounds is a high yielding bedrock aquifer that produces numerous fresh water springs along the Eramosa River northeast of the village of Arkell.Any farmer with land above the aquifer can at present pump water out of it.Using economic terms,what is the aquifer

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

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

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters

Exam 11: Public Goods and Common Resources

How can the free-rider problem become worse

The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible.

The local fire department wants to buy some new equipment at a cost of $2 million.If a human life is worth $10 million,the equipment is worth buying if it reduces the risk of someone dying in a fire over the life of the equipment by at least which of the following

What have Canadian studies shown is the approximate value of a statistical life

The government developed the patent system so that private inventors could make a reasonable profit from their own inventions.

What can we do to deal with the externalities associated with public goods and common resources

What are both public goods and common resources

One person's use of common resources does not reduce the enjoyment other people receive from the resource.

In an economy,when goods do not have a price,who or what primarily ensures that the good is produced

What,in essence,is a toll on congested roads

For the government to provide a product with tax revenue,what must be the case

If one person's use of a good diminishes another person's enjoyment of it,how is the good described

What is one way for the government to practically address the problem of road congestion

Why are proposals to use road tolls in an effort to reduce traffic congestion often rejected by the public

There are no goods in this day and age that can be consumed without paying for them.

When one person enjoys the benefit of national defence,he or she reduces the benefit to others.

The Arkell Spring Grounds is a high yielding bedrock aquifer that produces numerous fresh water springs along the Eramosa River northeast of the village of Arkell.Any farmer with land above the aquifer can at present pump water out of it.Using economic terms,what is the aquifer

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

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

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters