Exam 17: Public Goods and Common Resources

In which of the following cases can the tragedy of the commons occur? I. Cattle grazing on private ranches. II. Catching lobsters off the coast of Florida. III. Raising salmon on salmon farms. IV. Using legal services provided by the courts.

A good that is nonrival and excludable is a

Which of the following quotations describes a rival good?

The quantity of a public good produced by private provision

The tragedy of the commons is the absence of incentives to

A good that is rival and nonexcludable is a

According to public choice theory, a voter will tend to be well informed if the issue in question

Public choice theory predicts that

Cable television and air traffic control are similar to each other because both of them are

Although both cable television and air traffic control are nonrival, they differ from each other because

Use the figure below to answer the following questions. Figure 17.3.1 -Figure 17.3.1 shows the marginal private cost cure, marginal social cost curve, and marginal social benefit curve for cod, a common resource.To achieve an efficient quantity, the price of an ITQ is set at

The efficient use of a common resource requires that the ________ equals the ________.

An example of common resource is

A public good is

Setting a production quota does not always achieve the efficient use of a common resource because

For a common resource, the marginal private cost curve slopes ________ and the marginal social cost curve slopes ________.

Competitors who make themselves identical to appeal to the maximum number of voters illustrate the

According to public choice theory, government failure occurs because