Exam 11: Public Goods and Common Resources

-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 sets a production quota,the profit on the last ton of fish caught is ________ per ton.

-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.Suppose the government assigns individual transferable quotas (ITQ)set to achieve the efficient outcome.The market price of an ITQ is ________ per pound.

How is the efficient quantity of public goods determined?

-The table above shows the marginal benefit that arises from providing police protection in an economy of two people,Paul and Art. a.Construct a table of the economy's marginal benefit from providing police protection. b.What is the economy's marginal benefit from having 3 police cars on duty?

Why is watching sports more important to many prospective voters than watching the news? In your answer,mention the role played by rational ignorance and the cost of gathering information.

A common resource is

The marginal benefit curve of a public good is calculated by ________ individual marginal ________ curves.

-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 25 officers,then

A mother notices that when she divides brownies equally between her two children and gives each child her share on a separate plate,the brownies last a long time.But when she gives her children a plate to share,the brownies are gone pretty quickly.The mother concludes from this that brownies given on a single plate are

A private good is defined as a good or service

A good or resource from which no one can be excluded and which is nonrival is a

Suppose the government is producing a public good.If the marginal benefit of the last unit of a public good produced is greater than the marginal cost of that unit,to achieve the efficient amount of production,what should be done?

The fact that technology prevents Sam in Nevada from using the email account of Samantha in Virginia means that email is an example of

Which of the following is a correct statement?

The marginal benefit of a public good is the

Inefficient overproduction of a public good by the government is

What is an individual transferable quota (ITQ)?

A government policy that can lead to the efficient use of a common resource is

-Paul and Paula are the only members of society.The table above gives their marginal benefits from missile gunboats,a public good.Suppose the marginal cost of a missile gunboat is $8 million.What is the efficient quantity of missile gunboats?

When two competitors try to make themselves identical,they are