Exam 11: Public Goods and Common Resources

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

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

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.How many acres should the park be to maximize total surplus from the park in Anywhere?

Which of the following statements is correct?

To increase safety at a bad intersection,you must decide whether to install a traffic light in your hometown at a cost of $25,000.If the traffic light reduces the risk of fatality by 0.3 percent,and the value of a human life is estimated to be $10 million,you should

Even economists who advocate small government agree that national defense is a good that the government should provide.

The enclosure movement in England in the 17^th century represented an attempt to transform

Table 11-5 A small strip mall contains four retail stores,and crime has recently been on the increase in the neighborhood of the strip mall.The owners of the four stores - Stores A,B,C,and D - are considering contributing to a pool of money that will be used to hire up to 4 security guards.The table represents their willingness to pay,that is,the maximum amount that each store owner is willing to contribute,per day,to hire each security guard. -Refer to Table 11-5.Suppose the cost to hire each guard is $100 per day and the 4 store owners have agreed to split the costs of hiring guards equally.Which store owner(s)would be opposed to hiring any guards?

Which of the following goods is rival and excludable?

Figure 11-1 -Refer to Figure 11-1.The box labeled C represents

Variable tolls on roads

Mitch hunts deer.His shotgun is

A vacation home in Malibu is

When property rights are not well established,

The U.S.patent system

Which of the following is most likely to face extinction?

One solution to the "Tragedy of the Commons" is to turn the common resource into a private good.

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

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

A pizza is