Exam 11: Public Goods and Common Resources

Which of the following is the best example of a public good?

Which of the following is the best example of a private good?

The free-rider problem i.means that people can consume a good without paying for it. ii.means that people pay too much for a good in order to consume it. iii.applies to a public good.

-The table above shows Anita and Steve's marginal benefits for the annual 4th of July fireworks show at City Park.If Anita and Steve are the only two people in the economy,what is the economy's marginal benefit from the 19th minute of fireworks?

When describing goods and services,what is meant by the terms "rival" and "nonrival?" Are private goods rival or nonrival? Are public goods rival or nonrival? Are common resources rival or nonrival?

The tragedy of the commons is the absence of incentives to

-The table above shows Anita and Steve's marginal benefits for the annual 4th of July fireworks show at City Park.If Anita and Steve are the only two people in the economy and the marginal cost to produce one minute of fireworks is $28,what is the efficient quantity of fireworks?

For a common resource,the marginal private benefit of the resource is

Which of the following can bring about an efficient level of public goods being provided by the government?

-Paul and Paula are the only members of society.The table above gives their marginal benefits from missile gunboats,a public good.Determine the marginal benefit to society of the second missile gunboat.

When a production quota is used to remedy the tragedy of the commons,then

The fact that Florida's consumption of national defense does not preclude North Dakota from consuming the same national defense is an example of

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.The efficient outcome is raising ________.

Protection of rivers in Idaho is a public good.If the marginal cost of protecting rivers in Idaho exceeds the marginal benefit of river protection,is there more than,less than,or the efficient amount of river protection taking place?

Which of the following is necessary for competition in the political marketplace to result in the production of the efficient amount of a public good?

A good is rival if

Which of the following is an example of a pure private good?

If you can prevent someone from consuming a good,that good is called

Which of the following is true? i.A common resource is a resource that is nonrival and nonexcludable. ii.Issuing individual transferable quotas (ITQ)means that for users of common resources,the marginal cost plus the price of the ITQ equals the marginal social cost. iii.In an unregulated market,a common resource is used to the point at which marginal private benefit equals marginal cost.

A public good