Exam 17: Public Goods and Common Resources

On hot summer days,beach parking lots are usually full by early morning,even though one must pay to park there.Parking at such lots is _____ in consumption and _____.

For a public good,which statement(s)accurately describe(s)the marginal social benefit (MSB)? I.MSB equals the sum of the individual marginal benefits for all of the consumers of that unit. II.MSB equals the sum of each consumer's willingness to pay for that unit. III.MSB is greater than any individual marginal benefit.

The marginal social cost of a common resource is _____ than an individual's marginal cost,and without government intervention,the market will allow provision of _____ of the common resource than is socially optimal.

A public good is a good:

Which example is BEST characterized as an artificially scarce good?

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

One way the federal government could prevent an inefficiently large production of lobster fishing would be to:

Use the following to answer questions : Figure: Traffic Lights in Tweed,Ontario -(Figure: Traffic Lights in Tweed)Use Figure: Traffic Lights in Tweed.Tweed has 1 000 residents.Each of the residents has the same individual marginal benefit per traffic light.Without government intervention,the town will have _____ traffic lights.

Producers of artificially scarce goods face _____ that are similar to those of natural monopolists;they decline over the relevant range of output.

Use the following to answer questions : Scenario: Ben and Nik Ben and Nik are the only members of a community.They have revealed the marginal private benefits they each receive from a public good whose marginal social benefit is known.In addition,the marginal social cost (MSC)of the public good is known and is constant. -(Scenario: Ben and Nik)Use Scenario: Ben and Nik.In the figure,Q₄:

Stephanie stops at a gas station to fill up the tank of her car.The unleaded gasoline in her tank is BEST described as a(n):

Public goods should be provided to the point at which the marginal cost of production equals:

If the marginal social benefit received from a good is less than the marginal social cost of production:

Use the following to answer question 117: Figure: Marginal Social Cost and Supply -(Figure: Marginal Social Cost and Supply)Use Figure: Marginal Social Cost and Supply.The marginal social cost curve lies above the supply curve:

The tendency of people to avoid paying for a good's benefits when the benefits can be obtained for free is called the free-_____ problem.

An inefficient allocation of resources will occur when:

If at the quantity determined by private costs and benefits,the marginal social benefit of a public good is greater than the marginal social cost of providing the good:

Suppose that the lobster harvest is unregulated and any person with a lobster boat and some diesel fuel can go offshore,lower a lobster trap,and harvest lobster.As a result,this common resource is overused.Which policy choice might produce the socially optimal lobster harvest?

The government can intervene to achieve the socially optimal quantity of a common resource by using which approach(es)? I.assigning property rights II.imposing a tax on usage III.granting a limited number of tradable permits to use the good

Computer software that you can download from the Internet for a price is an artificially scarce good because it is _____ but _____ in consumption.