Exam 11: Public Goods and Common Resources

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

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

Recall the four types of goods. Are national defense and a patented invention the same type of good? Briefly explain.

Most lighthouses are operated by the government because

On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. On these days, electricity is

Which two types of goods are excludable?

Four roommates share an off-campus house and equally share the cost of rent. Everyone says that she values a clean house, yet the house is usually dirty. To an economist, a clean house in this case represents

The greatest difficulty with cost-benefit analysis of a public project is determining

Figure 11-1 -Refer to Figure 11-1. A gym membership at a gym that always has space in classes and on machines is an example of the type of good represented by Box

Which of the following is not a typical solution to the "Tragedy of the Commons?"

"Given that most people like to get 'free stuff,' it follows that goods that are available free of charge are produced and consumed in the proper amounts in a market economy." What is wrong with this statement?

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

Drivers have to pay a toll to drive on certain roads. In essence, a toll is a corrective tax on the externality of __________.