Exam 17: Public Goods and Common Resources

Use the figure below to answer the following questions. Figure 17.2.1 -Refer to Figure 17.2.1. Curve MBA is Andrew's marginal benefit curve for a private good and curve MBB is Betty's marginal benefit curve for the same private good. If Andrew and Betty are the only two consumers in the economy, which point would be on the economy's marginal social benefit curve?

Which of the following applies to the tragedy of the commons? I. In the absence of government action, there is an absence of incentives to prevent the overuse of the common resource. II. When consumers take account of the marginal social benefit and marginal social cost, overuse of the resource occurs. III. Even with government action, it is impossible for an efficient level of output to be achieved.

Use the figure below to answer the following questions. Figure 17.3.2 -Figure 17.3.2 shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. If property rights to the pasture are granted to a farmer so that the farmer owns the pasture, the farmer raises

The economy's demand curve for a public good is obtained by summing the individual

The budget of a government department is likely to increase beyond the efficient quantity if

Use the table below to answer the following questions. Table 17.2.1 -In Table 17.2.1, which of the proposals would be supported by political parties according to the principle of minimum differentiation?

The absence of incentives to prevent the overuse of a common resource that arises when its users have no incentive to conserve it and use it sustainably is referred to as

Public choice theory predicts that government

According to ________ theory, governments make choices that result in an ________ provision of public goods. This outcome occurs in ________.

The efficient scale of provision of a public good occurs where

The quantity of a public good produced by private provision

Competition between two political parties will cause those parties to propose policies

All of the following statements regarding rational ignorance are true except

When a city street is not congested, it is

Which of the following quotations describes a nonexcludable and nonrival good?

Use the figure below to answer the following questions. Figure 17.3.1 -Figure 17.3.1 shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The efficient quantity is

A public good is

Private provision of public goods