Question 1

Which of the following quotations illustrates the Tragedy of the Commons?

Accepted Answer

A)  "A bird in the hand is worth two in the bush." 
B)  "The only difference between the rich and other people is that the rich have more money." 
C)  "What is common to many is taken least care of,for all men have greater regard for what is their own than for what they possess in common with others." 
D)  "Anyone who is not a socialist before he is 30 has no heart;anyone who is still a socialist after he is 30 has no head." 
A)  "A bird in the hand is worth two in the bush." 
B)  "The only difference between the rich and other people is that the rich have more money." 
C)  "What is common to many is taken least care of,for all men have greater regard for what is their own than for what they possess in common with others." 
D)  "Anyone who is not a socialist before he is 30 has no heart;anyone who is still a socialist after he is 30 has no head."

Question 2

Since the London congestion toll plan was introduced,

Accepted Answer

A)  vehicle speeds in the city's central business district have increased. 
B)  carbon-dioxide emissions from cars and trucks have decreased. 
C)  the toll has grown increasingly popular with Londoners. 
D)  All of these things have happened. 
A)  vehicle speeds in the city's central business district have increased. 
B)  carbon-dioxide emissions from cars and trucks have decreased. 
C)  the toll has grown increasingly popular with Londoners. 
D)  All of these things have happened.

Question 3

Which of the following would be considered a private good?

Accepted Answer

A)  national defense 
B)  a public beach 
C)  local cable television service 
D)  a bottle of natural mineral water 
A)  national defense 
B)  a public beach 
C)  local cable television service 
D)  a bottle of natural mineral water

Question 4

Which of the following goods is rival and excludable?

Accepted Answer

A)  an uncongested toll road 
B)  an uncongested nontoll road 
C)  a congested nontoll road 
D)  a congested toll road 
A)  an uncongested toll road 
B)  an uncongested nontoll road 
C)  a congested nontoll road 
D)  a congested toll road

Question 5

Most goods in the economy are

Accepted Answer

A)  natural monopolies. 
B)  common resources. 
C)  public goods. 
D)  private goods. 
A)  natural monopolies. 
B)  common resources. 
C)  public goods. 
D)  private goods.

Question 6

The Tragedy of the Commons

Accepted Answer

A)  occurs most often with public goods. 
B)  is only applicable to shared grazing rights among sheep herders. 
C)  is eliminated when property rights are assigned to individuals. 
D)  occurs when social incentives are in line with private incentives. 
A)  occurs most often with public goods. 
B)  is only applicable to shared grazing rights among sheep herders. 
C)  is eliminated when property rights are assigned to individuals. 
D)  occurs when social incentives are in line with private incentives.

Question 7

For most goods in an economy,the signal that guides the decisions of buyers and sellers is

Accepted Answer

A)  preference. 
B)  government intervention. 
C)  quantity. 
D)  price. 
A)  preference. 
B)  government intervention. 
C)  quantity. 
D)  price.

Question 8

At the local park there is a playground for children to use.While anyone is allowed to use the playground,it is often very busy,reducing the enjoyment of many of the children who use it.The playground is a

Accepted Answer

A)  private good. 
B)  natural monopoly. 
C)  common resource. 
D)  public good. 
A)  private good. 
B)  natural monopoly. 
C)  common resource. 
D)  public good.

Question 9

An example of a private good would be

Accepted Answer

A)  national defense. 
B)  a t-shirt. 
C)  a streetlight. 
D)  a river. 
A)  national defense. 
B)  a t-shirt. 
C)  a streetlight. 
D)  a river.

Question 10

To achieve the optimal provision of public goods,the

Accepted Answer

A)  market should be allowed to arrive at an equilibrium without government intervention. 
B)  government must limit the provision of the goods. 
C)  government must tax producers of the goods. 
D)  government must either provide the goods or subsidize their production. 
A)  market should be allowed to arrive at an equilibrium without government intervention. 
B)  government must limit the provision of the goods. 
C)  government must tax producers of the goods. 
D)  government must either provide the goods or subsidize their production.

Exam 11: Public Goods and Common Resources

Which of the following quotations illustrates the Tragedy of the Commons?

Since the London congestion toll plan was introduced,

Which of the following would be considered a private good?

Which of the following goods is rival and excludable?

Most goods in the economy are

The Tragedy of the Commons

For most goods in an economy,the signal that guides the decisions of buyers and sellers is

At the local park there is a playground for children to use.While anyone is allowed to use the playground,it is often very busy,reducing the enjoyment of many of the children who use it.The playground is a

An example of a private good would be

To achieve the optimal provision of public goods,the

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters