Exam 11: Public Goods and Common Resources

Table 11-3 This table describes the defense demands for three equal sized groups of people in Nirvanaville.The second,third,and fourth column shows the quantity that a group will demand for a given price (the first column). -Refer to Table 11-3.If the marginal cost of national defense is constant at $12 per unit,what is the efficient level of national defense to provide?

Private companies will invest in medical research if

An AM radio transmission of a baseball game is

The Tragedy of the Commons results when a good is

Suppose that installing an overhead pedestrian walkway would cost a college town $150,000.The walkway is expected to reduce the risk of fatality by 3 percent,and the cost of a human life is estimated at $10 million.The town should

Ten friends who love to ski decide to pool their financial resources and equally share the cost of a one-week time-share condominium in Alta,Utah.Suppose that the lift lines at the ski resort become more congested when the ten additional people start to ski.Which of the following statements is not correct?

Consider the following problems: overcrowded public highways,overfishing in the ocean,polluted air,and the near-extinction of the wild rhinoceros.What do these problems have in common?

If a road is congested,then use of that road by an additional person would lead to a

To achieve the optimal provision of public goods,the

A toll collected from each car traveling during rush hour on a congested road is an effective correction to the Tragedy of the Commons for all of the following reasons except the toll provides an incentive for commuters to

For most goods in an economy,the signal that guides the decisions of buyers and sellers is

The national defense of the United States is not excludable because

Property rights are well established for

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

Which of the following is a disadvantage of government provision of a public good such as national defense? (i)The government does not know the exact willingness of consumers to pay for the public good. (ii)The free-rider problem is more likely to occur when the government provides a public good than when the private sector provides a public good. (iii)Taxpayers do not agree on the optimal quantity of the public good that the government should provide.

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

When goods do not have a price,which of the following primarily ensures that the good is produced?

Which of the following represents a potential solution to the problem of environmental pollution?

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

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