Question 1

Why does a tax on gasoline often reduce road congestion

Accepted Answer

A) Gasoline and driving are complementary goods. 
B) Gasoline and driving are substitute goods. 
C) Gasoline and driving are normal goods. 
D) Gasoline is considered an inferior good. 
A) Gasoline and driving are complementary goods. 
B) Gasoline and driving are substitute goods. 
C) Gasoline and driving are normal goods. 
D) Gasoline is considered an inferior good.

Question 2

What do goods that are excludable include

Accepted Answer

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

Question 3

When one person uses a common resource and he diminishes other people's enjoyment of it,what is this an example of

Accepted Answer

A) a market force 
B) an externality 
C) the invisible hand 
D) nonexcludability 
A) a market force 
B) an externality 
C) the invisible hand 
D) nonexcludability

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

Accepted Answer

A) True 
 B)False

Question 6

For most goods in an economy,what is the signal that guides the decisions of buyers and sellers

Accepted Answer

A) greed 
B) the self-interest of both buyers and sellers 
C) prices 
D) profits 
A) greed 
B) the self-interest of both buyers and sellers 
C) prices 
D) profits

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

What goods would be considered both excludable and rival in consumption

Accepted Answer

A) club goods 
B) common resources 
C) public goods 
D) private goods 
A) club goods 
B) common resources 
C) public goods 
D) private goods

Question 9

What is the difference between technological knowledge and general knowledge

Accepted Answer

A) General knowledge creation is usually more profitable for the creator. 
B) Technological knowledge is excludable and general knowledge is not. 
C) General knowledge is excludable and technological knowledge is not. 
D) General knowledge is rival in consumption and technological knowledge is not. 
A) General knowledge creation is usually more profitable for the creator. 
B) Technological knowledge is excludable and general knowledge is not. 
C) General knowledge is excludable and technological knowledge is not. 
D) General knowledge is rival in consumption and technological knowledge is not.

Question 10

What is an example of a private good

Accepted Answer

A) Internet service 
B) regional weather alerts 
C) fish in the ocean 
D) a milkshake 
A) Internet service 
B) regional weather alerts 
C) fish in the ocean 
D) a milkshake

Question 11

Ten friends who love to ski decide to pool their financial resources and equally share the cost of a one-week time-share condominium in Banff,Alberta.If lift lines at the ski resort become more congested when these ten additional people start to ski,then which of the following is most likely the case

Accepted Answer

A) Use of the ski resort by all of these 10 new skiers will yield a positive externality. 
B) The ski resort cannot do anything to reduce the congestion externality 
C) An increase in lift ticket prices could be viewed as a Pigovian tax on the externality of congestion. 
D) Everyone would have been better off to stay at home. 
A) Use of the ski resort by all of these 10 new skiers will yield a positive externality. 
B) The ski resort cannot do anything to reduce the congestion externality 
C) An increase in lift ticket prices could be viewed as a Pigovian tax on the externality of congestion. 
D) Everyone would have been better off to stay at home.

Question 12

Which statement best describes the cause of "overrun and over-trampled" national parks

Accepted Answer

A) Park administrators do not use the best science available to manage park resources. 
B) National parks are treated as free goods by their visitors. 
C) National parks annually adjust park visitation fees to the rate of inflation. 
D) The price of entrance to national parks has kept pace with other forms of recreation. 
A) Park administrators do not use the best science available to manage park resources. 
B) National parks are treated as free goods by their visitors. 
C) National parks annually adjust park visitation fees to the rate of inflation. 
D) The price of entrance to national parks has kept pace with other forms of recreation.

Question 13

What do goods that are NOT rival in consumption include

Accepted Answer

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

Why does a tax on gasoline often reduce road congestion

What do goods that are excludable include

When one person uses a common resource and he diminishes other people's enjoyment of it,what is this an example of

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.

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

For most goods in an economy,what is the signal that guides the decisions of buyers and sellers

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

What goods would be considered both excludable and rival in consumption

What is the difference between technological knowledge and general knowledge

What is an example of a private good

Which statement best describes the cause of "overrun and over-trampled" national parks

What do goods that are NOT rival in consumption include

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

Why does a tax on gasoline often reduce road congestion

What do goods that are excludable include

When one person uses a common resource and he diminishes other people's enjoyment of it,what is this an example of

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.

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

For most goods in an economy,what is the signal that guides the decisions of buyers and sellers

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

What goods would be considered both excludable and rival in consumption

What is the difference between technological knowledge and general knowledge

What is an example of a private good

Which statement best describes the cause of "overrun and over-trampled" national parks

What do goods that are NOT rival in consumption include

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