Question 1

Scenario 11-2
Consider the following goods:
-fire-protection services provided by a fire department
-a beautiful mural on the outside wall of a fire station
-a firefighter's helmet
-Refer to Scenario 11-2. Which of these goods is the best example of a private good? Briefly explain.

Accepted Answer

A firefighter's helmet is the ...

Question 2

Economists argue that we can calculate the value of a human life by observing voluntary risks that people take every day.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements about private goods and public goods is correct?

Accepted Answer

A)   Private goods and public goods are both excludable.
B)   Private goods and public goods are both rival in consumption.
C)   Private goods are not excludable and public goods are excludable.
D)   Private goods are rival in consumption and public goods are not excludable.E) All of the above
F) A) and B)

Question 4

If one person's use of good x diminishes other people's use of it, then good x is one of two types of goods. What are those two types?

Accepted Answer

As described, good x is rival ...

Question 5

Under which of the following scenarios would a park be considered a public good?

Accepted Answer

A)   Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables.
B)   Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use.
C)   Visitors can enter the park free of charge and there are always plenty of empty picnic tables.
D)   Visitors can enter the park free of charge, but frequently all of the picnic tables are in use.E) B) and C)
F) A) and D)

Question 6

Nontoll roads can be either public goods or common resources, depending upon the degree of congestion.

Accepted Answer

A) True 
 B)False

Question 7

Advocates of antipoverty programs claim that fighting poverty is a public good.

Accepted Answer

A) True 
 B)False

Question 8

The Pennsylvania Turnpike is a tolled freeway running through the state of Pennsylvania. Motorists must pay tolls at various points along the Turnpike based on the distance they traveled on the freeway. Suppose that despite the tolls, many motorists in the urban areas use the Turnpike causing traffic to slow during peak times. What type of good would the Turnpike be classified as in this case?

Accepted Answer

A)   private good
B)   club good
C)   common resource
D)   public goodE) A) and B)
F) A) and C)

Question 9

The Tragedy of the Commons occurs because

Accepted Answer

A)   common resources are rival in consumption.
B)   government does not efficiently allocate society's scarce resources.
C)   people consider the value of resources in the future more than in the present.
D)   markets do not account for the presence of property rights.E) None of the above
F) All of the above

Question 10

Neither public goods nor common resources are

Accepted Answer

A)   excludable, but only public goods are not rival in consumption.
B)   excludable, but only common resources are not rival in consumption.
C)   rival in consumption, but only public goods are not excludable.
D)   rival in consumption, but only common resources are not excludable.E) A) and B)
F) A) and C)

Question 11

Tolls are not effective in altering people's incentives to drive during rush hour.

Accepted Answer

A) True 
 B)False

Question 12

A mobile phone is a

Accepted Answer

A)   private good.
B)   club good.
C)   common resource.
D)   public good.E) B) and C)
F) A) and D)

Question 13

Scenario 11-3
Consider the following goods:
-a fish fillet served at a restaurant
-fish in the ocean
-exotic fish in a huge aquarium in a privately-owned building
-Refer to Scenario 11-3. Do any of these goods cause an externality? If so, which one(s)? Positive or negative?
Briefly explain.

Accepted Answer

The exotic fish in the huge aquarium res...

Question 14

On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?

Accepted Answer

A)   The lack of a fireworks display in Yankeeville arises because of an externality.
B)   The lack of a fireworks display in Yankeeville arises because the free-rider problem does not apply to goods such as fireworks displays.
C)   In deciding not to produce a fireworks display in Yankeeville, private individuals and private firms made decisions that were privately irrational.
D)   All of the above are correct.E) A) and B)
F) B) and C)

Question 15

Which of the following is not a reason that the findings of cost-benefit analyses on public goods are only rough approximations?

Accepted Answer

A)   Without prices, it is difficult to be sure how much people really value a good.
B)   Analysts can't be sure that the respondents to surveys are telling the truth.
C)   Analysis must include not only the cost of building the project but also the cost of maintenance, if any.
D)   People value goods differently if they are publicly provided rather than privately provided.E) A) and B)
F) None of the above

Question 16

On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. An overcrowded picnic area is an example of

Accepted Answer

A)   a private good.
B)   a club good.
C)   a Tragedy of the Commons.
D)   public good.E) A) and D)
F) C) and D)

Question 17

Some goods, such as lighthouses, can switch between being public goods and being private goods depending on the circumstances.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The free-rider problem

Accepted Answer

A)   forces the supply of a public good to exceed its demand.
B)   results in common resources becoming club goods.
C)   explains why many local governments supply public goods.
D)   results in public goods becoming private goods.E) A) and D)
F) A) and C)

Question 20

Which of the following goods is nonrival in consumption and excludable?

Accepted Answer

A)   Grand Canyon National Park on a rainy, cool day
B)   Disney World on a rainy, cool day
C)   a crowded public beach on a sunny, warm day
D)   White Mountain ski resort on a sunny, mild dayE) A) and B)
F) B) and D)

Exam 11: Public Goods and Common Resources

Which of the following goods is nonrival in consumption and excludable?

Correct Answer
verified

Advocates of antipoverty programs claim that fighting poverty is a public good.

Correct Answer
verified

Nontoll roads can be either public goods or common resources, depending upon the degree of congestion.

Correct Answer
verified

Some goods, such as lighthouses, can switch between being public goods and being private goods depending on the circumstances.

Correct Answer
verified

Scenario 11-3 Consider the following goods: -a fish fillet served at a restaurant -fish in the ocean -exotic fish in a huge aquarium in a privately-owned building -Refer to Scenario 11-3. Do any of these goods cause an externality? If so, which one(s)? Positive or negative? Briefly explain.

Correct Answer
verified
The exotic fish in the huge aquarium res...
View Answer

Which of the following statements about private goods and public goods is correct?

Correct Answer
verified

Neither public goods nor common resources are

Correct Answer
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Economists argue that we can calculate the value of a human life by observing voluntary risks that people take every day.

Correct Answer
verified

Under which of the following scenarios would a park be considered a public good?

Correct Answer
verified

A mobile phone is a

Correct Answer
verified

The Tragedy of the Commons occurs because

Correct Answer
verified

Scenario 11-2 Consider the following goods: -fire-protection services provided by a fire department -a beautiful mural on the outside wall of a fire station -a firefighter's helmet -Refer to Scenario 11-2. Which of these goods is the best example of a private good? Briefly explain.

Correct Answer
verified
A firefighter's helmet is the ...
View Answer

On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?

Correct Answer
verified

On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. An overcrowded picnic area is an example of

Correct Answer
verified

Correct Answer
verified

Which of the following is not a reason that the findings of cost-benefit analyses on public goods are only rough approximations?

Correct Answer
verified

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

Correct Answer
verified

If one person's use of good x diminishes other people's use of it, then good x is one of two types of goods. What are those two types?

Correct Answer
verified
As described, good x is rival ...
View Answer

The free-rider problem

Correct Answer
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Tolls are not effective in altering people's incentives to drive during rush hour.

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Which of the following goods is nonrival in consumption and excludable?

Correct AnswerverifiedShow Answer

Advocates of antipoverty programs claim that fighting poverty is a public good.

Correct AnswerverifiedShow Answer

Nontoll roads can be either public goods or common resources, depending upon the degree of congestion.

Correct AnswerverifiedShow Answer

Some goods, such as lighthouses, can switch between being public goods and being private goods depending on the circumstances.

Correct AnswerverifiedShow Answer

Scenario 11-3 Consider the following goods: -a fish fillet served at a restaurant -fish in the ocean -exotic fish in a huge aquarium in a privately-owned building -Refer to Scenario 11-3. Do any of these goods cause an externality? If so, which one(s)? Positive or negative? Briefly explain.

Correct AnswerverifiedThe exotic fish in the huge aquarium res...View AnswerShow Answer

Which of the following statements about private goods and public goods is correct?

Correct AnswerverifiedShow Answer

Neither public goods nor common resources are

Correct AnswerverifiedShow Answer

Economists argue that we can calculate the value of a human life by observing voluntary risks that people take every day.

Correct AnswerverifiedShow Answer

Under which of the following scenarios would a park be considered a public good?

Correct AnswerverifiedShow Answer

A mobile phone is a

Correct AnswerverifiedShow Answer

The Tragedy of the Commons occurs because

Correct AnswerverifiedShow Answer

Scenario 11-2 Consider the following goods: -fire-protection services provided by a fire department -a beautiful mural on the outside wall of a fire station -a firefighter's helmet -Refer to Scenario 11-2. Which of these goods is the best example of a private good? Briefly explain.

Correct AnswerverifiedA firefighter's helmet is the ...View AnswerShow Answer

On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?

Correct AnswerverifiedShow Answer

On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. An overcrowded picnic area is an example of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not a reason that the findings of cost-benefit analyses on public goods are only rough approximations?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If one person's use of good x diminishes other people's use of it, then good x is one of two types of goods. What are those two types?

Correct AnswerverifiedAs described, good x is rival ...View AnswerShow Answer

The free-rider problem

Correct AnswerverifiedShow Answer

Tolls are not effective in altering people's incentives to drive during rush hour.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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The exotic fish in the huge aquarium res...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A firefighter's helmet is the ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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As described, good x is rival ...
View Answer

Correct Answer
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Correct Answer
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