Exam 11: Public Goods and Common Resources

In deciding whether a good is a public good, one must determine the

In a cost-benefit analysis, the value of a human life is sometimes calculated on the basis of

When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Knowledge that is patented is a

What particular characteristic do private goods and common resources have in common?

What particular characteristic do public goods and club goods have in common?

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Both public goods and common resources are

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States. Any farmer with land above the aquifer can at present pump water out of it. Which of the following statements about the aquifer is correct?

Figure 11-1 -Refer to Figure 11-1. A bottle of soda is an example of the type of good represented by Box

Mike Miller is the town manager of Medfield, a town with 50,000 residents. At a recent town meeting, several citizens proposed building a large public swimming pool in the center of town for all of the residents to enjoy. A survey of all 50,000 residents revealed that the pool would be worth $50 to each of them. Because the cost to build the swimming pool is only $1,000,000, Manager Miller arranges to have the pool built. Everyone in town enjoys the pool, but when Manager Miller asks for donations to pay for the pool, he only collects $250,000. Manager Miller soon realizes that

Which parable describes the problem of wild animals that are hunted to the point of extinction?

Most goods in the economy are

For all types of goods that are not private goods, the market fails to allocate resources efficiently because _________________.

Three business people meet for lunch at an Indian restaurant. They decide that each person will order an item off the menu, and they will share all dishes. They will split the cost of the final bill evenly among each of the people at the table. When the food is delivered to the table, each person faces incentives similar to the

Which of the following statements is not correct?

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Governments that chose to make endangered elephants private goods have met with more success protecting elephants than governments that chose to make killing elephants illegal.

Neither public goods nor common resources are

The Tragedy of the Commons