Exam 11: Public Goods and Common Resources

Suppose that everyone prefers to live in a society without poverty.Further suppose that some private charities are successful in reducing poverty.People who do not contribute to the charities

Depending on congestion,national parks can be either a common resource or a public good.

A streetlight is a

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.Which of the following statements about the aquifer is correct?

Table 11-1 Consider the town of Tritown with only three residents,Ed,Jim,and Tony.The three residents are trying to determine how large,in acres,they should build the public park.The table below shows each resident's willingness to pay for each acre of the park. -Refer to Table 11-1.Suppose the cost to build the park is $30 per acre and that the residents have agreed to split the cost of building the park equally.If the residents decide to build a park with size equal to the number of acres that maximizes total surplus from the park,how much total surplus will Ed receive?

Because of the free-rider problem,

The difference between specific knowledge and general knowledge is that

Which of the following is not a way for the government to solve the problem of excessive use of common resources?

Because elephants roam freely in many countries in Africa,each individual African elephant poacher has

The U.S.government protects fish,a common resource,by

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Which of the following statements is not correct?

Some goods can be classified as either public goods or private goods depending on the circumstances.

In some cases the government can make everyone better off by raising taxes to pay for certain goods that the market fails to provide.

A study that compares the costs and benefits to society of providing a public good is called externality analysis.

Which of the following goods is rival in consumption and excludable?

In deciding whether a good is a public good,one must determine the

Suppose that policymakers are doing cost-benefit analysis on a proposal to add traffic barriers to divide the flow of traffic in an effort to increase safety on a given highway.Which of the following statements is correct?

Which of the following is not a characteristic of a public good?

One possible solution to the problem of protecting a common resource is to convert that resource to a private good.