Exam 11: Public Goods and Common Resources

A private good is defined as a good or service

The tendency of political parties to propose identical policies which appeal to the maximum number of voters is referred to as the principle of

A good or resource that is both nonrival and nonexcludable is

For which type of good is it necessary to sum the marginal benefit curves vertically in order to obtain the economy's marginal benefit curve?

What are the differences between public goods and private goods?

How does the principle of minimum differentiation relate to the free-rider problem?

Why isn't national defense provided by free markets?

Suppose a public good is provided in an economy with only two consumers, Popeye and Captain Hook.If Popeye values the public good at $4,000 per year, and Captain Hook values it at $3,000 per year, the economy's marginal benefit of the public good per year is

A good that can be consumed even if the consumer does not pay for it

The reason that private provision of a public good often leads to inefficiency is because

When producers are hard to monitor and property rights are too costly, ________ are an effective method to achieve efficient use of a ________.

A good is a private good if

The marginal benefit curve of a public good

Which of the following goods is best described as nonexcludable?

-The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource.The efficient outcome is ________.

A public good is

The fact that Florida's consumption of national defense does not preclude North Dakota from consuming the same national defense is an example of

Why are fish in the ocean an example of a resource that suffers from the tragedy of the commons but cattle grazing in a farmer's pasture do not suffer from the tragedy of the commons?

Inefficient overproduction of a public good by the government is

Which of the following is an example of a pure private good?