Exam 11: Public Goods and Common Resources

The Tragedy of the Commons occurs because

Scenario 11-3 Consider the following goods: -a fish fillet served at a restaurant -fish in the ocean -exotic fish in a huge aquarium in a privately-owned building -Refer to Scenario 11-3. Do any of these goods cause an externality? If so, which one(s)? Positive or negative? Briefly explain.

Nontoll roads can be either public goods or common resources, depending upon the degree of congestion.

Which of the following statements about private goods and public goods is correct?

On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?

The free-rider problem

Advocates of antipoverty programs claim that fighting poverty is a public good.

Neither public goods nor common resources are

Economists argue that we can calculate the value of a human life by observing voluntary risks that people take every day.

On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. An overcrowded picnic area is an example of

A mobile phone is a

If one person's use of good x diminishes other people's use of it, then good x is one of two types of goods. What are those two types?

Which of the following is not a reason that the findings of cost-benefit analyses on public goods are only rough approximations?

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

Scenario 11-2 Consider the following goods: -fire-protection services provided by a fire department -a beautiful mural on the outside wall of a fire station -a firefighter's helmet -Refer to Scenario 11-2. Which of these goods is the best example of a private good? Briefly explain.

Some goods, such as lighthouses, can switch between being public goods and being private goods depending on the circumstances.

An example of the "Tragedy of the Commons" is litter in the picnic area of a local park.

The Pennsylvania Turnpike is a tolled freeway running through the state of Pennsylvania. Motorists must pay tolls at various points along the Turnpike based on the distance they traveled on the freeway. Suppose that despite the tolls, many motorists in the urban areas use the Turnpike causing traffic to slow during peak times. What type of good would the Turnpike be classified as in this case?

Under which of the following scenarios would a park be considered a public good?

Tolls are not effective in altering people's incentives to drive during rush hour.