Exam 11: Public Goods and Common Resources

Governments can grant private property rights over resources that were previously viewed as public, such as fish or elephants. Why would governments want to do so?

Figure 11-1 -Refer to Figure 11-1. The box labeled C represents what type of good?

Which of the following statements is correct?

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

Recall the four types of goods. Are national defense and a patented invention the same type of good? Briefly explain.

Table 11-3 This table describes the police protection demands for three equal sized groups of people in Safetyville. The second, third, and fourth columns show the number of person-hours of police protection per day that a group will demand for a given price the first column). -Refer to Table 11-3. What is the value of the 39th unit of police protection in Safetyville?

Someone who uses a good without paying for it is called a _______?

A free-rider problem exists for any good that is not

Table 11-1 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park. -Refer to Table 11-1. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?

A television broadcast is an example of a good that is

Even economists who advocate small government agree that

Which of the following is most likely to face extinction?

The Tragedy of the Commons will be evident when a growing number of sheep grazing on the town commons leads to a destruction of the grazing resource. To correct for this problem, the town could

Advocates of antipoverty programs believe that fighting poverty

The pollution market failure is an example of the free rider problem.

For most goods in an economy, the primary signal that guides the decisions of buyers and sellers is

An internet radio broadcast is

You and your friends eat potato chips in your bedroom. For you and your friends, the potato chips are rival in consumption.

Table 11-1 Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park. -Refer to Table 11-1. Suppose the cost to build the park is $9 per acre. How large should the park be to maximize total surplus from the park in Springfield?

Table 11-2 Consider a small town with only three families, the Greene family, the Brown family, and the Black family. The town does not currently have any streetlights so it is very dark at night. The three families are considering putting in streetlights on Main Street and are trying to determine how many lights to install. The table below shows each family's willingness to pay for each streetlight. -Refer to Table 11-2. Suppose the cost to install each streetlight is $900 and the families have agreed to split the cost of installing the streetlights equally. To maximize their own surplus, how many streetlights would the Black's like the town to install?