Question 1

What are the differences between public goods and private goods?

Accepted Answer

Public goods are
•nonrival,which means t

Question 2

-The table above provides information about the marginal cost and marginal benefit of streetlights,which are a public good.
a.What quantity would a private company provide? Why?
b.What is the efficient quantity?

Accepted Answer

a.Street lights are a public good,so a p

Question 3

Why are private firms unable to produce public goods?

Accepted Answer

A)  Because the government outlaws private firms from producing them. 
B)  The marginal cost of production is too high for private production to be possible. 
C)  They can produce these goods, but they would not earn any revenue because of the free-rider problem. 
D)  The tragedy of the commons means that private firms produce an inefficient amount of public goods. 
E)  None of the above answers is correct. 
A)  Because the government outlaws private firms from producing them. 
B)  The marginal cost of production is too high for private production to be possible. 
C)  They can produce these goods, but they would not earn any revenue because of the free-rider problem. 
D)  The tragedy of the commons means that private firms produce an inefficient amount of public goods. 
E)  None of the above answers is correct.

Question 4

A good is nonrival if

Accepted Answer

A)  only the government can produce it. 
B)  nobody can be excluded from enjoying the benefits of the good. 
C)  when you pay for the good, you are guaranteed to be the sole consumer. 
D)  when you consume a unit, you have not decreased the amount left for consumption by other people. 
E)  anybody can be excluded from enjoying the benefits of the good. 
A)  only the government can produce it. 
B)  nobody can be excluded from enjoying the benefits of the good. 
C)  when you pay for the good, you are guaranteed to be the sole consumer. 
D)  when you consume a unit, you have not decreased the amount left for consumption by other people. 
E)  anybody can be excluded from enjoying the benefits of the good.

Question 5

A good or resource is excludable if

Accepted Answer

A)  only the government can produce them. 
B)  nobody can be excluded from enjoying the benefits of the good or resource. 
C)  when you pay for the good or resource, you are guaranteed to be the sole consumer. 
D)  when you consume a unit, that means there is one less for someone else. 
E)  it is a common resource. 
A)  only the government can produce them. 
B)  nobody can be excluded from enjoying the benefits of the good or resource. 
C)  when you pay for the good or resource, you are guaranteed to be the sole consumer. 
D)  when you consume a unit, that means there is one less for someone else. 
E)  it is a common resource.

Question 6

Fish in the ocean are an example of ________ because they are ________.

Accepted Answer

A)  public good; nonexcludable and nonrival 
B)  public good; rival and excludable 
C)  common resource; rival and nonexcludable 
D)  common resource; nonrival and nonexcludable 
E)  private good; caught by private fishermen 
A)  public good; nonexcludable and nonrival 
B)  public good; rival and excludable 
C)  common resource; rival and nonexcludable 
D)  common resource; nonrival and nonexcludable 
E)  private good; caught by private fishermen

Question 7

To achieve the efficient level of national defense,

Accepted Answer

A)  the government could provide national defense because it is a public good. 
B)  private firms can provide national defense because it is a private good. 
C)  the government can provide national defense because it is a private good. 
D)  the government can provide national defense because it is a common resource. 
E)  None of the above answers is correct. 
A)  the government could provide national defense because it is a public good. 
B)  private firms can provide national defense because it is a private good. 
C)  the government can provide national defense because it is a private good. 
D)  the government can provide national defense because it is a common resource. 
E)  None of the above answers is correct.

Question 8

For a common resource,the marginal private cost curve ________ and the marginal social cost curve ________.

Accepted Answer

A)  slopes upward; slopes upward 
B)  slopes upward; slopes downward 
C)  slopes downward; slopes upward 
D)  slopes downward; slopes downward 
E)  is vertical; is horizontal 
A)  slopes upward; slopes upward 
B)  slopes upward; slopes downward 
C)  slopes downward; slopes upward 
D)  slopes downward; slopes downward 
E)  is vertical; is horizontal

Question 9

We determine the economy's marginal benefit curve for a public good or service by

Accepted Answer

A)  vertically summing the individual marginal benefit curves of each member of society. 
B)  horizontally summing the individual marginal benefits curves of each member of society. 
C)  multiplying the marginal benefits of each member of society. 
D)  dividing the sum of the marginal benefits of each member of society by the number of people in society. 
E)  vertically summing the individual firm's marginal cost curves. 
A)  vertically summing the individual marginal benefit curves of each member of society. 
B)  horizontally summing the individual marginal benefits curves of each member of society. 
C)  multiplying the marginal benefits of each member of society. 
D)  dividing the sum of the marginal benefits of each member of society by the number of people in society. 
E)  vertically summing the individual firm's marginal cost curves.

Question 10

-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.A quota to prevent the overuse of the common pasture sets the number of goats to be raised equal to ________.

Accepted Answer

A)  0 goats 
B)  40 goats 
C)  50 goats 
D)  55 goats 
E)  None of the above answers is correct. 
A)  0 goats 
B)  40 goats 
C)  50 goats 
D)  55 goats 
E)  None of the above answers is correct.

Question 11

For which type of good is it necessary to sum the marginal benefit curves vertically in order to obtain the economy's marginal benefit curve?

Accepted Answer

A)  public goods 
B)  mixed goods 
C)  private goods 
D)  goods that are subject to the exclusion principle 
E)  common resources 
A)  public goods 
B)  mixed goods 
C)  private goods 
D)  goods that are subject to the exclusion principle 
E)  common resources

Question 12

A public good is

Accepted Answer

A)  rival and excludable. 
B)  rival and nonexcludable. 
C)  nonrival and excludable. 
D)  nonrival and nonexcludable. 
E)  a good that has an infinite number of substitutes. 
A)  rival and excludable. 
B)  rival and nonexcludable. 
C)  nonrival and excludable. 
D)  nonrival and nonexcludable. 
E)  a good that has an infinite number of substitutes.

Question 13

Which of the following is NOT a potential solution to the tragedy of the commons?

Accepted Answer

A)  setting a production quota 
B)  granting individual transferable quotas 
C)  subsidizing use of the resource 
D)  establishing property rights to the resource 
E)  None of the above is correct because they are all potential solutions to the tragedy of the commons. 
A)  setting a production quota 
B)  granting individual transferable quotas 
C)  subsidizing use of the resource 
D)  establishing property rights to the resource 
E)  None of the above is correct because they are all potential solutions to the tragedy of the commons.

Question 14

What does it mean for a good to be "nonexcludable"? Are private goods nonexcludable? Are public goods nonexcludable? Are common resources nonexcludable?

Accepted Answer

A good is nonexcludable if it is impossi

Question 15

A professional football game played in a completely full stadium is NOT a public good because it is

Accepted Answer

A)  nonexcludable and nonrival. 
B)  excludable and nonrival. 
C)  excludable and rival. 
D)  nonexcludable and rival. 
E)  not supplied by the government. 
A)  nonexcludable and nonrival. 
B)  excludable and nonrival. 
C)  excludable and rival. 
D)  nonexcludable and rival. 
E)  not supplied by the government.

Question 16

A good is a private good if

Accepted Answer

A)  people who do not pay for the good can enjoy it without paying for it. 
B)  it is not a common resource. 
C)  the good is nonrival. 
D)  the good is excludable and rival. 
E)  it is both nonexcludable and nonrival. 
A)  people who do not pay for the good can enjoy it without paying for it. 
B)  it is not a common resource. 
C)  the good is nonrival. 
D)  the good is excludable and rival. 
E)  it is both nonexcludable and nonrival.

Question 17

When producers are hard to monitor and property rights are too costly,________ is (are)an effective method to achieve efficient use of a(n)________.

Accepted Answer

A)  individual transfer quotas; public good 
B)  making a government payment equal to the marginal private benefits; public good 
C)  individual transferable quotas; common resource 
D)  individual transferable quotas; excludable good 
E)  making a government payment equal to the marginal private costs; common resource 
A)  individual transfer quotas; public good 
B)  making a government payment equal to the marginal private benefits; public good 
C)  individual transferable quotas; common resource 
D)  individual transferable quotas; excludable good 
E)  making a government payment equal to the marginal private costs; common resource

Question 18

A good that is both rival and excludable is

Accepted Answer

A)  a good that is impossible to produce. 
B)  a private good. 
C)  a common resource. 
D)  a public good. 
E)  nonexistent because no good can be both rival and excludable. 
A)  a good that is impossible to produce. 
B)  a private good. 
C)  a common resource. 
D)  a public good. 
E)  nonexistent because no good can be both rival and excludable.

Question 19

The efficient quantity of a public good is the quantity at which marginal benefit is

Accepted Answer

A)  greater than marginal cost by any amount. 
B)  less than marginal cost. 
C)  equal to marginal cost. 
D)  zero. 
E)  greater than marginal cost by the maximum amount. 
A)  greater than marginal cost by any amount. 
B)  less than marginal cost. 
C)  equal to marginal cost. 
D)  zero. 
E)  greater than marginal cost by the maximum amount.

Question 20

A public good is ________ and ________.

Accepted Answer

A)  rival; excludable 
B)  rival; nonexcludable 
C)  nonrival; excludable 
D)  nonrival; nonexcludable 
E)  cheap; available 
A)  rival; excludable 
B)  rival; nonexcludable 
C)  nonrival; excludable 
D)  nonrival; nonexcludable 
E)  cheap; available

What are the differences between public goods and private goods?

-The table above provides information about the marginal cost and marginal benefit of streetlights,which are a public good. a.What quantity would a private company provide? Why? b.What is the efficient quantity?

Why are private firms unable to produce public goods?

A good is nonrival if

A good or resource is excludable if

Fish in the ocean are an example of because they are .

To achieve the efficient level of national defense,

For a common resource,the marginal private cost curve and the marginal social cost curve .

We determine the economy's marginal benefit curve for a public good or service by

-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.A quota to prevent the overuse of the common pasture sets the number of goats to be raised equal to ________.

For which type of good is it necessary to sum the marginal benefit curves vertically in order to obtain the economy's marginal benefit curve?

A public good is

Which of the following is NOT a potential solution to the tragedy of the commons?

What does it mean for a good to be "nonexcludable"? Are private goods nonexcludable? Are public goods nonexcludable? Are common resources nonexcludable?

A professional football game played in a completely full stadium is NOT a public good because it is

A good is a private good if

When producers are hard to monitor and property rights are too costly, is (are)an effective method to achieve efficient use of a(n).

A good that is both rival and excludable is

The efficient quantity of a public good is the quantity at which marginal benefit is

A public good is and .

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 11: Public Goods and Common Resources

What are the differences between public goods and private goods?

-The table above provides information about the marginal cost and marginal benefit of streetlights,which are a public good. a.What quantity would a private company provide? Why? b.What is the efficient quantity?

Why are private firms unable to produce public goods?

A good is nonrival if

A good or resource is excludable if

Fish in the ocean are an example of ________ because they are ________.

To achieve the efficient level of national defense,

For a common resource,the marginal private cost curve ________ and the marginal social cost curve ________.

We determine the economy's marginal benefit curve for a public good or service by

-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.A quota to prevent the overuse of the common pasture sets the number of goats to be raised equal to ________.

For which type of good is it necessary to sum the marginal benefit curves vertically in order to obtain the economy's marginal benefit curve?

A public good is

Which of the following is NOT a potential solution to the tragedy of the commons?

What does it mean for a good to be "nonexcludable"? Are private goods nonexcludable? Are public goods nonexcludable? Are common resources nonexcludable?

A professional football game played in a completely full stadium is NOT a public good because it is

A good is a private good if

When producers are hard to monitor and property rights are too costly,________ is (are)an effective method to achieve efficient use of a(n)________.

A good that is both rival and excludable is

The efficient quantity of a public good is the quantity at which marginal benefit is

A public good is ________ and ________.

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Fish in the ocean are an example of because they are .

For a common resource,the marginal private cost curve and the marginal social cost curve .

When producers are hard to monitor and property rights are too costly, is (are)an effective method to achieve efficient use of a(n).

A public good is and .