Exam 11: Public Goods and Common Resources

When the value of a human life is calculated according to the economic contribution a person makes to society (as reflected in her income-earning potential),the troubling implication is that

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

The U.S.patent system

Roads can be considered either public goods or common resources,depending on how congested they are.

A lighthouse might be considered a private good if

The Tragedy of the Commons occurs because

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 $300 and the families have agreed to split the cost of installing the streetlights equally.To maximize their own surplus,how many streetlights would the Harris's like the town to install?

Goods that are rival in consumption and excludable would be considered

A view of a spectacular sunset along a private beach is an example of a

National Public Radio would be considered a natural monopoly.

In which of the following examples are property rights not well established?

Market failure associated with the free-rider problem is a result of

Consider a public road that anyone is allowed to drive on.If the road is often congested,the road would be considered a

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

Government policy can potentially raise economic well-being

Bill owns 3 acres of beautiful wooded land.When Bill decides to move to be closer to his grandchildren,he donates the land to the state with the understanding that the land will be used as a state park that anyone may use without paying any fees.This state park

For private goods allocated in markets,

Cost-benefit analysis is important to determine the role of government in our economy because

Without government intervention,public goods tend to be

Concerts in arenas are not excludable because it is virtually impossible to prevent someone from seeing the show.