Question 1

Which of the following would be considered a private good?

Accepted Answer

A)  a ferry boat ride to an island with open seating 
B)  a public beach 
C)  fish in the ocean 
D)  a swimming suit 
A)  a ferry boat ride to an island with open seating 
B)  a public beach 
C)  fish in the ocean 
D)  a swimming suit

Question 2

All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

Accepted Answer

A) True 
 B)False

Question 3

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. Which of these goods is the best example of a club good? Briefly explain.

Accepted Answer

The exotic fish in the huge aq

Question 4

If everyone benefits from helping the poor,

Accepted Answer

A)  government intervention cannot improve social well-being. 
B)  eliminating taxes aimed at redistributing income will make rich people better off. 
C)  taxing the wealthy to raise living standards of the poor can potentially make everyone better off. 
D)  private markets can adequately provide charity programs to help the poor, despite free-rider problems. 
A)  government intervention cannot improve social well-being. 
B)  eliminating taxes aimed at redistributing income will make rich people better off. 
C)  taxing the wealthy to raise living standards of the poor can potentially make everyone better off. 
D)  private markets can adequately provide charity programs to help the poor, despite free-rider problems.

Question 5

Figure 11-1
Rival in Consumption?
    
-Refer to Figure 11-1. With which of the boxes - A, B, C, or D - do we associate the Tragedy of the Commons?

Accepted Answer

We associate the Tra

Question 6

Which of the following is an example of the free-rider problem?

Accepted Answer

A)  Both Zoe and Zach receive low-cost dental care at the local dental school, so neither of them pays the full cost of the care. 
B)  Alfred receives a free lunch from the local "Meals on Wheels" program because of his low monthly income. Yet his next door neighbor, Alice, is not eligible for the free lunch. 
C)  Bruce owns Buster, a large dog who barks whenever anyone walks near his house. Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walks near her house, too. Thus, Betty receives free protection from burglars because of Buster's barking. 
D)  Sam purchases a burger at a fast food restaurant and gets a second burger free because the restaurant is having a buy one, get one free sale. 
A)  Both Zoe and Zach receive low-cost dental care at the local dental school, so neither of them pays the full cost of the care. 
B)  Alfred receives a free lunch from the local "Meals on Wheels" program because of his low monthly income. Yet his next door neighbor, Alice, is not eligible for the free lunch. 
C)  Bruce owns Buster, a large dog who barks whenever anyone walks near his house. Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walks near her house, too. Thus, Betty receives free protection from burglars because of Buster's barking. 
D)  Sam purchases a burger at a fast food restaurant and gets a second burger free because the restaurant is having a buy one, get one free sale.

Question 7

Which of the following goods is excludable but not rival in consumption?

Accepted Answer

A)  a congested toll road 
B)  fire protection in a small town 
C)  a tornado siren 
D)  whales in the ocean 
A)  a congested toll road 
B)  fire protection in a small town 
C)  a tornado siren 
D)  whales in the ocean

Question 8

The U.S. patent system

Accepted Answer

A)  makes general knowledge excludable. 
B)  makes specific, technical knowledge excludable. 
C)  creates a disincentive to invent. 
D)  Both a and b are correct. 
A)  makes general knowledge excludable. 
B)  makes specific, technical knowledge excludable. 
C)  creates a disincentive to invent. 
D)  Both a and b are correct.

Question 9

A good that is rival in consumption and not excludable is called a

Accepted Answer

A)  public good. 
B)  common resource. 
C)  club good. 
D)  private good. 
A)  public good. 
B)  common resource. 
C)  club good. 
D)  private good.

Question 10

Pollution is a

Accepted Answer

A)  problem that is entirely unrelated to the parable called the Tragedy of the Commons. 
B)  problem that cannot be remedied with regulations or corrective taxes. 
C)  negative externality that can be viewed as a public-goods problem. 
D)  negative externality that can be viewed as a common-resource problem. 
A)  problem that is entirely unrelated to the parable called the Tragedy of the Commons. 
B)  problem that cannot be remedied with regulations or corrective taxes. 
C)  negative externality that can be viewed as a public-goods problem. 
D)  negative externality that can be viewed as a common-resource problem.

Question 11

The phenomenon of free riding is most closely associated with which type of good?

Accepted Answer

A)  private goods 
B)  club goods 
C)  common resources 
D)  public goods 
A)  private goods 
B)  club goods 
C)  common resources 
D)  public goods

Question 12

Common resources and public goods have in common that they are not excludable and they are not rival in consumption.

Accepted Answer

A) True 
 B)False

Question 13

Table 11-3
This table describes the police protection demands for three equal sized groups of people in Safetyville. The second, third, and fourth columns show the number of person-hours of police protection per day that a group will demand for a given price (the first column).
  
-Refer to Table 11-3. What is the value of the 99th unit of police protection in Safetyville?

Accepted Answer

A)  $0 
B)  $6 
C)  $12 
D)  $18 
A)  $0 
B)  $6 
C)  $12 
D)  $18

Question 14

Because it is

Accepted Answer

A)  neither excludable nor rival in consumption, a tornado siren is a common resource. 
B)  neither excludable nor rival in consumption, a tornado siren is a public good. 
C)  excludable but not rival in consumption, a tornado siren is produced by a natural monopoly. 
D)  rival in consumption but not excludable, a tornado siren is a common resource. 
A)  neither excludable nor rival in consumption, a tornado siren is a common resource. 
B)  neither excludable nor rival in consumption, a tornado siren is a public good. 
C)  excludable but not rival in consumption, a tornado siren is produced by a natural monopoly. 
D)  rival in consumption but not excludable, a tornado siren is a common resource.

Question 15

Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?

Accepted Answer

A)  tablet computer, gym membership at a gym that always has plenty of open equipment and classes 
B)  tablet computer, national defense 
C)  congested nontoll road, national defense 
D)  online music subscription, streetlight 
A)  tablet computer, gym membership at a gym that always has plenty of open equipment and classes 
B)  tablet computer, national defense 
C)  congested nontoll road, national defense 
D)  online music subscription, streetlight

Question 16

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Accepted Answer

A) True 
 B)False

Question 17

One person's use of common resources does not reduce the enjoyment other people receive from the resource.

Accepted Answer

A) True 
 B)False

Question 18

Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely

Accepted Answer

A)  be provided by a private firm rather than the government. 
B)  have a free-rider problem. 
C)  not exist. 
D)  be limited to a small number of units of production. 
A)  be provided by a private firm rather than the government. 
B)  have a free-rider problem. 
C)  not exist. 
D)  be limited to a small number of units of production.

Question 19

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 public good? Briefly explain.

Accepted Answer

The beautiful mural is the bes

Question 20

Property rights are well established for

Accepted Answer

A)  private goods. 
B)  public goods. 
C)  common resources. 
D)  both (b) and (c). 
A)  private goods. 
B)  public goods. 
C)  common resources. 
D)  both (b) and (c).

Exam 11: Public Goods and Common Resources

Which of the following would be considered a private good?

All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

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. Which of these goods is the best example of a club good? Briefly explain.

If everyone benefits from helping the poor,

Figure 11-1 Rival in Consumption? -Refer to Figure 11-1. With which of the boxes - A, B, C, or D - do we associate the Tragedy of the Commons?

Which of the following is an example of the free-rider problem?

Which of the following goods is excludable but not rival in consumption?

The U.S. patent system

A good that is rival in consumption and not excludable is called a

Pollution is a

The phenomenon of free riding is most closely associated with which type of good?

Common resources and public goods have in common that they are not excludable and they are not rival in consumption.

Because it is

Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is not excludable and not rival in consumption?

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

One person's use of common resources does not reduce the enjoyment other people receive from the resource.

Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely

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 public good? Briefly explain.

Property rights are well established for

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

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