Exam 11: Public Goods and Common Resources

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

The Tragedy of the Commons describes

A vacation home in Malibu is

Figure 11-1 -Refer to Figure 11-1. A bottle of soda is an example of the type of good represented by Box

It is commonly argued that national defense is a public good. Nevertheless, the weapons used by the U.S. military are produced by private firms. We can conclude that

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

The creation of knowledge is a public good. Because knowledge is a public good, profit-seeking firms tend to free- ride on the knowledge created by others and, as a result, devote too few resources to the creation of knowledge. How does the U.S. government correct for this apparent market failure?

One economically efficient way to eliminate the Tragedy of the Commons is to

Which of the following is not a common resource?

Which of the following statements is not correct?

Why is cable TV reception regarded as a club good?

When the absence of property rights causes a market failure, the government can potentially solve the problem

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. An economist would suggest that

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

Figure 11-1 -Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box A?

To achieve the optimal provision of public goods, the

You and your friends eat potato chips in your bedroom. For you and your friends, the potato chips are rival in consumption.

People can be prevented from using a good if the good is

The Tragedy of the Commons can be corrected by

Knowledge that is patented is a