Exam 11: Public Goods and Common Resources

Highway engineers have proposed improving a dangerous stretch of highway at a cost of $3 million.They expect that it will reduce the risk of someone dying in an accident from 22.1 percent to 7.1 percent over the life of the highway.What is the value of a human life whereby the project would be worth doing

When private costs differ from social costs,leading to a Tragedy of the Commons,which of the following must be present

Studies have 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 this chemical is $18 million.If each person saved has a value equal to $10 million,how many people must the policy affect for benefits to exceed costs

Which good would satisfy attributes of a club good

What do goods that are rival in consumption include

When an infinite value is placed on human life,what will policymakers who rely on cost-benefit analysis likely do

Government policy is of little use for properly allocating those goods that do not have prices attached to them.

How can the Tragedy of the Commons be corrected

When the government decides to build a new highway,the first step is to conduct a study to determine the value of the project.What is the study called

When one person uses a common resource,such as fish in the ocean,what would be the most likely outcome

What results when a good is not excludable

Why does the Tragedy of the Commons occur

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

Why does the government provide public goods

The Arkell Spring Grounds is a high yielding bedrock aquifer that produces numerous fresh water springs along the Red Valley River northeast of the village of Arkell.Any farmer with land above the aquifer can at present pump water out of it.What might we expect

Suppose a human life is worth $10 million.Installing a better lighting system in the city park would reduce the risk of a murder taking place there from 3.5 to 2.1 percent over the life of the system.At what cost should the city install the new lighting system

What are uncongested roads a good example of

A lighthouse that primarily benefits a single port owner is most like which type of good

How are club goods classified

In recognition of the overfishing that resulted from unregulated access to the Atlantic Cod Fishery,what did Canada implement to initiate a quota system