Exam 11: Public Goods and Common Resources

The national defense of the United States is not rival because

Which of the following is not a common resource?

The Pennsylvania Turnpike is a tolled freeway running through the state of Pennsylvania.Motorists must pay tolls at various points along the Turnpike based on the distance they traveled on the freeway.Suppose that despite the tolls,many motorists in the urban areas use the Turnpike causing traffic to slow during peak times.What type of good would the Turnpike be classified as in this case?

Neither public goods nor common resources are

The town of Isle is on a small island connected to Big City by a single bridge.Most of the residents of Isle work in Big City.As a result,the bridge becomes very congested for 2 hours each day at the typical morning and evening commute times.Which of the following policies considered by the mayor of Isle would likely be most effective in alleviating the congestion?

An FM radio signal is an example of a good that is

Which of the following is not a characteristic of a public good?

The difference between specific knowledge and general knowledge is that

The Tragedy of the Commons occurs because

Which of the following statements is correct?

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 individual guard is $100 per day.Then total surplus for the 4 store owners is

The free-rider problem exists with

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.To maximize his own surplus,how many acres would Bill like Anywhere to build?

Which of the following is not a public good?

Labor is a

The failure of markets to adequately protect the environment can viewed either as a problem of

Some goods can be either common resources or public goods depending on

It is common knowledge that many U.S.national parks have become overused.One possible solution to this problem is to

Free goods are usually efficiently allocated without government intervention.

Suppose that the Town of Bumbletree is considering hiring an additional police officer.The reduction in crime is estimated to be worth $10 for each of Bumbletree's 5,000 residents.What should the city do?