Exam 11: Public Goods and Common Resources

It is commonly argued that national defense is a public good. Nevertheless, the weapons used by the U.S. military are produced by private firms. We can conclude that

Which of the following statements is true of the tax on gasoline?

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?

Common resources and public goods have in common that they are not excludable and they are not rival in consumption.

Why has the value of ivory threatened the extinction of the elephant, whereas the value of beef has enhanced the survival of the cow?

The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008. The cost of imposing a regulation that would ban the chemical is $32 million. If the value of a human life is equal to $10 million, how many people must the policy affect in order for the benefits to exceed the costs?

If everyone benefits from helping the poor,

One of the least regulated common resources today is

The degradation of the environment from litter is a

Which of the following goods is both excludable and rival in consumption?

The ocean remains one of the largest unregulated resources for each of the following reasons except

An example of the "Tragedy of the Commons" is litter in the picnic area of a local park.

One person's use of common resources does not reduce the enjoyment other people receive from the resource.

Figure 11-1 Rival in Consumption? Yes No Excludable? ^Yes No -Refer to Figure 11-1. The box labeled D represents

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

An absence of property rights often leads to market failure. When this is the case, how does society usually solve the problem?

The goal of requiring licenses for hunting and fishing is

People cannot be prevented from using a good if the good is

What do we mean when we say that a good is excludable?

Free goods are usually efficiently allocated without government intervention.