Question 1

Excessive fishing occurs because

Accepted Answer

A)  each individual fisherman has little incentive to maintain the species for the next year. 
B)  fishermen rely on government managers to worry about fish populations. 
C)  fishermen are unionized,so they are not concerned with externalities. 
D)  fishermen have other marketable skills and do not fear exploitation of fish reserves. 
A)  each individual fisherman has little incentive to maintain the species for the next year. 
B)  fishermen rely on government managers to worry about fish populations. 
C)  fishermen are unionized,so they are not concerned with externalities. 
D)  fishermen have other marketable skills and do not fear exploitation of fish reserves.

Question 2

The privately-owned school system in Smalltown has a virtually unlimited capacity.It accepts all applicants and operates on both tuition and private donations.Although every resident places value on having an educated community,the school's revenues have suffered lately due to a large decline in private donations from the elderly population.Since the benefit that each citizen receives from having an educated community is a public good,which of the following would not be correct?

Accepted Answer

A)  The free-rider problem causes the private market to undersupply education to the community. 
B)  The government can potentially help the market reach a socially optimal level of education. 
C)  A tax increase to pay for education could potentially make the community better off. 
D)  The private market is the best way to supply education. 
A)  The free-rider problem causes the private market to undersupply education to the community. 
B)  The government can potentially help the market reach a socially optimal level of education. 
C)  A tax increase to pay for education could potentially make the community better off. 
D)  The private market is the best way to supply education.

Question 3

Goods that are rival in consumption and excludable would be considered

Accepted Answer

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

Question 4

Without government intervention,public goods tend to be

Accepted Answer

A)  overproduced and common resources tend to be overconsumed. 
B)  overproduced and common resources tend to be underconsumed. 
C)  underproduced and common resources tend to be overconsumed. 
D)  underproduced and common resources tend to be underconsumed. 
A)  overproduced and common resources tend to be overconsumed. 
B)  overproduced and common resources tend to be underconsumed. 
C)  underproduced and common resources tend to be overconsumed. 
D)  underproduced and common resources tend to be underconsumed.

Question 5

The Occupational Safety and Health Administration (OSHA)has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of diet soft drinks is 0.0005.The cost of imposing a regulation that would ban the chemical is $18 million.If the value of a human life is equal to $10 million,how many people must the policy affect in order for the benefits to exceed the costs?

Accepted Answer

A)  301 
B)  601 
C)  1801 
D)  3601 
A)  301 
B)  601 
C)  1801 
D)  3601

Question 6

The U.S.government protects fish,a common resource,by

Accepted Answer

A)  subsidizing the fishing industry. 
B)  heavily taxing competing industries. 
C)  selling fishing licenses and regulating fish lengths. 
D)  None of the above is correct. 
A)  subsidizing the fishing industry. 
B)  heavily taxing competing industries. 
C)  selling fishing licenses and regulating fish lengths. 
D)  None of the above is correct.

Question 7

The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity.

Accepted Answer

A) True 
 B)False

Question 8

The degradation of the environment from litter is a

Accepted Answer

A)  a negative externality. 
B)  free rider problem. 
C)  Tragedy of the Commons. 
D)  Both a and c are correct. 
A)  a negative externality. 
B)  free rider problem. 
C)  Tragedy of the Commons. 
D)  Both a and c are correct.

Excessive fishing occurs because

Goods that are rival in consumption and excludable would be considered

Without government intervention,public goods tend to be

The U.S.government protects fish,a common resource,by

The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity.

The degradation of the environment from litter is a

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 Costs of Production

Firms in Competitive Markets

Monopoly

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving,investment,and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Filters

Exam 11: Public Goods and Common Resources

Excessive fishing occurs because

Goods that are rival in consumption and excludable would be considered

Without government intervention,public goods tend to be

The U.S.government protects fish,a common resource,by

The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity.

The degradation of the environment from litter is a

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 Costs of Production

Firms in Competitive Markets

Monopoly

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving,investment,and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Filters