Exam 11: Public Goods and Common Resources

Table 11-2 Consider a small town with only three families,the Jones family,the Harris family,and the Wong family.The town does not currently have any streetlights so it is very dark at night.The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install.The table below shows each family's willingness to pay for each streetlight. -Refer to Table 11-2.Suppose the cost to install each streetlight is $400 and the families have agreed to split the cost of installing the streetlights equally.To maximize their own surplus,how many streetlights would the Wong's like the town to install?

An ice cream cone is

The degradation of the environment from litter is a

Why is the commercial value of ivory a threat to the elephant,while the commercial value of beef is the cow's guardian?

Highway engineers have proposed improving a dangerous stretch of highway at a cost of $1.5 million.They expect that it will reduce the risk of someone dying in an accident over the life of the highway from 18.3 percent to 7.8 percent.The project would be worth doing as long as a human life is worth at least

The Tragedy of the Commons occurs because

Governments that chose to make endangered elephants private goods have met with more success protecting elephants than governments that chose to make killing elephants illegal.

It is common knowledge that many U.S.national parks have become overused.One possible solution to this problem is to

If we can conclude that human life has a finite value,cost-benefit analysis can lead to solutions in which human life is worth less than the cost of a potential project.

Tom is a non-union employee at General Power.The majority of the employees at General Power are unionized.The union at General Power has negotiated very good benefits.Even though he is not a union member and he does not have to pay union dues,Tom receives all the benefits that the union has negotiated.Tom's behavior is an example of

To increase safety at a bad intersection,you must decide whether to install a traffic light in your hometown at a cost of $15,000.If the traffic light reduces the risk of fatality by 0.4 percent,and the value of a human life is estimated to be $10 million,you should

A congested side street in your neighborhood is

Which of the following is an example of the free-rider problem?

A cheeseburger is

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Which of the following is an approach used by economists to calculate the value of a human life?

Some goods can be either common resources or public goods depending on

Goods that are rival in consumption but not excludable would be considered

Which city currently charges drivers a "congestion toll" to drive into the heart of the city's financial,legal,and entertainment district?

One economically efficient way to eliminate the Tragedy of the Commons is to