Exam 11: Public Goods and Common Resources

Under which of the following scenarios would a park be considered a common resource?

Each of the following is likely to be a successful way for the government to solve the problem of overuse of a common resource except

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 D?

The provision of public goods gives rise to

An economics professor,upset about the rising cost of textbooks,proposed that his department purchase 50 copies of a statistics book so the students in the statistics class would not have to purchase their own books but rather could borrow a book for the semester and then return it for the next class to use.Which of the following strategies would not prevent a common resource problem with the textbooks?

The sign on a church in your neighborhood reads "All are welcome at Sunday Service." Because the church has limited seating and is usually full,the Sunday Service is

The value and cost of goods are easiest to determine when the goods are

Figure 11-1 -Refer to Figure 11-1.A tornado siren in a small town is an example of the type of good represented by Box

Table 11-2 Consider a small town with only three families,the Johnson family,the Marshall family,and the Walker family.The town does not currently have any streetlights so it is very dark at night.The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install.The table below shows each family's willingness to pay for each streetlight. -Refer to Table 11-2.Suppose the cost to install each streetlight is $450 and the families have agreed to split the cost of installing the streetlights equally.To maximize their own surplus,how many streetlights would the Walker's like the town to install?

Most lighthouses are operated by the government because

A toll on a congested road is in essence

Table 11-1 Consider the town of Anywhere with only three residents,Mary,Bill,and Tricia.The three residents are trying to determine how large,in acres,they should build the public park.The table below shows each resident's willingness to pay for each acre of the park. -Refer to Table 11-1.Suppose the cost to build the park is $33 per acre and that the residents have agreed to split the cost of building the park equally.If the residents vote to determine the size of park to build,basing their decision solely on their own willingness to pay (and trying to maximize their own surplus),what is the largest park size for which the majority of residents would vote "yes?"

Private goods and club goods have in common that they are excludable,but are different in that private goods are rival while club goods are not rival in consumption.

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

Nine friends who love the beach decide to pool their financial resources and equally share the cost of a one-week house rental on Nantucket.Suppose that the beach outside of the house becomes more congested when the nine additional people join the other beachgoers.Which of the following statements is not correct?

National defense is provided by the government because

Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws.Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws,we can likely conclude that

Most goods in the economy are

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

A New York legislator wanted to create a deposit on cigarettes butts.If implemented,people would have the incentive to (1)not toss cigarette butts onto public streets and sidewalks,and (2)pick butts up to redeem them for the cash.The degradation of the environment from littered cigarette butts is a