Exam 17: Public Goods and Common Resources

DeVonda owns a music store.One night,vandals broke her store's front window.DeVonda called the police,and the police investigated the crime.The police services that DeVonda used are BEST described as a(n):

Use the following to answer questions : Quantity of Dave's Art's Streetlights in the Individual Individual Neighbourhood Marginal Benefit Marginal Benefit 0 1 \ 15 \ 20 2 10 15 3 5 10 4 2 3 -(Table: Marginal Benefit from Additional Streetlights)Use Table: Marginal Benefit from Additional Streetlights.Suppose that the marginal cost of installing a streetlight is $6.What is the maximum that Art would be willing to pay to have one streetlight installed in the neighbourhood?

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 total social benefit of three animal control officers?

The BEST example of a public good is:

Nikos and Camila are working on a team project for a course.They will receive the same grade for the project.They have done a great job,but they have not kept track of their bibliography sources very well,although they both have all of the information.Camila knows that Nikos will eventually do the bibliography since Nikos does not like to turn in incomplete work.As a result:

In the United Kingdom,most public television programming is paid for by a yearly licence fee assessed on every household.Television detection vans go through neighbourhoods to detect unlicensed households and keep them from viewing without paying.This is a good example of the _____ provision of _____.

A Pigouvian tax can lead to the efficient level of production and consumption of:

The source of inefficiency in the use of artificially scarce goods is similar to the source of inefficiencies created by:

Public goods differ from common resources in that,while both are _____,public goods are _____,while common resources are _____.

Fish in a public lake are common resources because the private market _____ prevent consumption by people who do not pay for access to fish.Further,the same fish _____ be consumed more than once.

After many years,a small community builds a toll road but discovers that it is not used very much.If it wishes for the road to be used at the socially optimal level,the community should:

The BEST example of a public good is:

A public good is a good or service for which exclusion is _____ and that is _____ in consumption.

Which example is considered a private good?

To maximize society's welfare,the government should produce a public good up to the point at which the marginal social benefit _____ the marginal social cost.

Clean water in a river is nonexcludable because:

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 forces the private-sector firms to internalize any external costs:

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 price of the upgrade?

A private good is a good or service for which exclusion is _____ and that is _____ in consumption.

What is difficult about using cost-benefit analysis to estimate the level of a public good that will maximize social welfare?