Exam 11: Public Goods and Common Resources

Which of the following applies to the tragedy of the commons and a common resource? i.In the absence of government action,there are no incentives to prevent the overuse of the common resource. ii.When consumers take account of the marginal social benefit and marginal cost,overuse of the common resource occurs. iii.Even with government action,it is impossible to achieve the efficient level of use of a common resource.

"The problem with a common resource is that no one gets to use the resource." Comment on the preceding assertion.

What is the free-rider problem? What results from the free-rider problem? What is a solution to the free-rider problem?

In which of the following cases does the tragedy of the commons occur? i.cattle grazing on private ranches ii.catching lobsters off the coast of Florida iii.raising salmon on salmon farms iv.using legal services provided by the courts

Is a sailboat purchased in Victoria,British Columbia,a private good or a public good?

-Ten homeowners live around Lake Alice.Unfortunately,the lake is contaminated with various chemicals and the level of contamination is currently 20 parts per million.All the homeowners benefit equally if the level of contamination is reduced.The table above gives the marginal cost and marginal benefit for removing the contaminants from the lake. a.What will be the parts per million if the homeowners alone are in charge of reducing the contaminants? b.What is the efficient amount of contamination?

For a common resource such as fish,the marginal private benefit ________ the marginal social benefit and the marginal private cost ________ the marginal social cost.

Using the figure above,suppose there are two political parties,the Hawks and the Doves,which agree on all issues except for the quantity of defense satellites.The Hawks want 300 satellites and the Doves want 100 satellites.The voters are well informed and know what is best for them.The parties run a voter survey and discover the marginal benefit curve (MB).They also know the marginal cost curve (MC).What quantity of satellites will most likely result from this political process?

-The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo,Oklahoma.Police protection is a public good.If the city of Hugo hires 5 officers,marginal

-The table above shows the marginal social benefit of fishing in Mediterranean Sea.The marginal private cost of operating a fishing boat is the same for all producers,$300 per hour.The marginal social cost is twice the marginal private cost.If the government uses individual transferrable quotas to achieve the efficient outcome,what is the total quantity of fish caught?

The marginal benefit curve of a public good

Very few voters know the enormous cost of providing price supports to farmers.As a result,these voters most likely exhibit

What is the free-rider problem and with what is it associated?

Because national defense is potentially subject to free riding,a private sector market for national defense would lead to

Government bureaucracies over-provide public goods and grow larger because of their goal of ________ combined with ________ of the voters.

In the figure above,the efficient quantity of satellites to produce is

A good that is ________ and ________ is a ________.

-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 market equilibrium with no government intervention is raising ________.

-The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo,Oklahoma.Police protection is a public good.The efficient number of officers that should be hired by the city of Hugo is

When use of a good decreases the quantity available for someone else,the good is