Exam 11: Public Goods and Common Resources

Goods that are rival in consumption include both

Phil owns 10 acres of beautiful wooded land.When Phil decides to move to be closer to his grandchildren,he donates the land to the state with the understanding that the land will be used as a state park.Phil wants an efficient way to prevent overcrowding at the park,so he should require

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 decide to build a park with size equal to the number of acres that maximizes total surplus from the park,how much total surplus will Bill receive?

Table 11-4 There are four homes along Belmont Circle,which surrounds a small plot of land.The land currently has no trees,and the 4 homeowners -- Adams,Benitez,Chen,and Davis -- are considering the idea of contributing to a pool of money that will be used to plant up to 4 trees.The table represents their willingness to pay,that is,the maximum amount that each homeowner is willing to contribute toward each tree. -Refer to Table 11-4.Suppose the cost to plant each tree is $220 and the 4 homeowners have agreed to split all tree-planting costs equally.Which homeowner(s)would be in favor of planting at least 3 trees?

It should not be surprising if the public sector fails to pay for the right amount or right kinds of basic research because

At the local park there is a playground that anyone may use.There is rarely anyone using the playground,so children who use the playground receive full enjoyment from its use.The playground is

Because the benefits of basic research are obvious and easy to measure,it is likely that the public sector pays for the right amount and the right kinds of basic research.

Because elephants roam freely in many countries in Africa,each individual African elephant poacher has

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

Four roommates share an off-campus house and equally share the cost of rent.Everyone says that she values a clean house,yet the house is usually dirty.To an economist,a clean house in this case represents

Advocates of antipoverty programs claim that fighting poverty

Elephants are endangered,but cows are not because

Elephant populations in some African countries have started to rise because

Table 11-3 This table describes the defense demands for three equal sized groups of people in Nirvanaville.The second,third,and fourth column shows the quantity that a group will demand for a given price (the first column). -Refer to Table 11-3.What is the value of the 33^rd unit of national defense in Nirvanaville?

Common resources and public goods have in common that they are not excludable and they are not rival in consumption.

Too few resources are devoted to the creation of knowledge because profit-seeking firms

Which of the following is not a reason why government agencies subsidize basic research?

Which of the following statements is not correct?

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Antonio,Vanessa,and Norah all enjoy looking at flowers blooming in gardens in their neighborhood.The neighborhood association is considering planting a flower garden around the sign at the entrance to the neighborhood.Antonio values the garden at $25,Vanessa at $15,and Norah at $30.The flowers and labor for the garden cost $55.What should the neighborhood association do?