Exam 17: Public Goods and Common Resources

Economic policymaking is _____ in consumption and _____.

For a nonexcludable good like national defence,the private market will lead to _____ of the good.

If a good has a marginal cost of production of zero and an inefficiently low level of consumption,the good must be a(n):

Which good is MOST likely a public good?

Use the following to answer questions : Figure: Correcting for Market Failure -(Figure: Correcting for Market Failure)Use Figure: Correcting for Market Failure.There is an external cost in the market illustrated in the figure,and the two upward-sloping lines reflect private and social marginal costs.If the government intervenes to correct for the external cost,the new _____ will now reflect _____ costs.

If the market supply and demand curves for a common resource include all costs and benefits to society from production and consumption,the common resource will:

Which good is MOST likely a common resource?

Use the following to answer questions : $\text {Table: Marginal Benefit, Cost, }$ $\text {and Consumer Surplus}$ Individual Consumer Marginal Benefit Adriana \ 2 Bhagesh 15 Chizuko 1 Denzel 10 Emma 5 Frank 4 -(Table: Marginal Benefit,Cost,and Consumer Surplus)Use Table: Marginal Benefit,Cost,and Consumer Surplus.The table shows six consumers' willingness to pay for one iTunes download.If the marginal social cost is constant at _____,then _____ consumers will purchase this good,and consumer surplus is _____.

When a good is nonexcludable:

An example of a common resource is:

Use the following to answer questions : Table: Total Cost and Total Individual Benefit Quantity of Animal Control Officers Total Cost Total Individual Benefit 0 \ 0 \ 0 1 20000 40 2 40000 70 3 60000 90 4 80000 100 5 100000 105 -(Table: Total Cost and Total Individual Benefit)Use Table: Total Cost and Total Individual Benefit.If there are 1 000 residents and they all have the same total individual benefit,as shown in the table,what is the marginal social benefit of the fourth animal control officer?

Use the following to answer questions : Figure: An Individual's Marginal Benefit from a Public Good -(Figure: An Individual's Marginal Benefit from a Public Good)Use Figure: An Individual's Marginal Benefit from a Public Good.Assume that two individuals will share consumption of a public good;each individual has the marginal benefit curve shown in the figure.If the marginal cost of the good is $24,how many units of the public good will be provided by the private market?

A(n)_____ is nonexcludable and nonrival in consumption.

Use the following to answer questions : Figure: Demand and Marginal Revenue -(Figure: Demand and Marginal Revenue)Use Figure: Demand and Marginal Revenue.The figure refers to a software upgrade.The producer incurred fixed costs of $10 million to produce the upgrade;the marginal cost of allowing consumers to download the upgrade is zero.What is the efficient level of output for the upgrade?

No individual is willing to pay for the efficient quantity of a public good because the marginal benefit to an individual _____ the marginal social benefit.

An e-book is similar to a published book in that it is _____,but it is also similar to national defence in that it is _____.

For nonrival goods like pay-per-view television programmes,the private market will lead to _____ from a social perspective.

A common resource is _____ in consumption.

An artificially scarce good is a good or service for which exclusion is _____ and that is _____ in consumption.

The BEST example of a private good is: