Exam 11: Public Goods and Common Resources

If we can conclude that human life has a finite value,cost-benefit analysis can lead to solutions in which human life is worth less than the cost of a potential project.

Economists argue that we can calculate the value of a human life by observing voluntary risks that people take every day.

Which of the following would be considered a private good?

The Tragedy of the Commons describes

Government agencies,such as the National Science Foundation,subsidize basic research because in the absence of a subsidy too little research would be conducted.

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 $110 per day and the 4 store owners have agreed to split the costs of hiring guards equally.Which of the following statements is correct?

If one person's use of a good diminishes another person's enjoyment of it,the good is

A town engineer comes to the city council with a proposal to install a traffic light at a certain intersection that currently has a stop sign.The benefit of the traffic light is increased safety because the light will reduce the incidence of fatal traffic accidents by 50 percent per year.Which of the following statements is correct?

A good that is excludable is one that someone can be prevented from using if she did not pay for it.

Who among the following is a free rider?

The ocean remains one of the largest unregulated resources for each of the following reasons except

A congested side street in your neighborhood is

It would always be a mistake to view

When the value of a human life is calculated according to the economic contribution a person makes to society (as reflected in her income-earning potential),the troubling implication is that

A variable toll on a road in Washington reached a high during the evening rush hour of $5.75.This toll bought the drivers who paid it a 27 minute time savings.Which of the following is correct?

Pollution is a

An example of the "Tragedy of the Commons" is litter in the picnic area of a local park.

If everyone benefits from helping the poor,

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

In determining whether and how much of a public good to provide,cost-benefits analysts use the same type of price signals for public goods as are readily available for private goods.