Exam 17: Public Goods and Common Resources

Common resources tend to be _____ in private markets.

Traffic congestion imposes higher costs and discomfort to residents of a city because the marginal social cost of any one individual's use of the roads is _____ the individual marginal cost.

Use the following to answer questions : Figure: Market Failure -(Figure: Market Failure)Use Figure: Market Failure.Suppose that the supply curve represents the marginal cost of providing streetlights in a neighbourhood where only two people,Ann and Joe,reside.The demand curve represents the marginal benefit that Ann receives from the streetlights.Suppose that Joe's marginal benefit from the streetlights is a constant amount equal to the vertical distance A-C.If Ann is the only person to pay for the streetlights,how many lights will be provided?

When comparing the characteristics of common resources and artificially scarce goods,we find that:

If left to the private market,the amount of police protection provided in a city would be _____ than it is now,and free riders would pay _____ for police protection.

Which example is considered a public good?

Encouragement of voluntary contributions to the provision of public goods:

If the marginal social benefit received from a good is equal to the marginal social cost of production:

Use the following to answer questions : Figure: Market Failure -(Figure: Market Failure)Use Figure: Market Failure.In the figure,which point coincides with the equilibrium for a competitive market?

If an individual does not have to pay to use a common resource,that individual will continue to use a common resource until his or her:

For a good to be efficiently provided by the private market,it must be:

When the allocation of resources in a free market environment is such that a different allocation would increase society's welfare,economists say that:

When Joe watches a movie on Netflix,his viewing is _____ in consumption because other people _____ able to watch the movie at the same time as Joe does.

A key feature of a public good is:

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 $0,then the efficient price is _____ and consumer surplus is _____.

The government can intervene to avoid overfishing by using which approach(es)? I.assigning property rights II.imposing a tax on usage III.granting a limited number of tradable fishing permits

Every few months,public radio announces a call for pledge support.During this time,it asks listeners to contribute to their local public radio station.Although they raise money during this time,it often falls short of the amount they wish to raise because:

A small public park in a large town with many other parks often has very few visitors because of its size.There is no fee to enter the park,but few people visit it since other parks have more amenities.This park is _____ in consumption and _____.

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 socially optimal number of streetlights in the neighbourhood?

Which example is considered an artificially scarce good?