Question 1

The commercial value of ivory is a threat to the elephant, but the commercial value of beef is a guardian of the cow. This is because

Accepted Answer

A)  the cow is raised in developed countries, while the elephant lives primarily in less-developed countries.
B)  cows are private goods, while elephants tend to roam freely without owners.
C)  cows and elephants are public goods, but ivory is nonrival.
D)  ivory is nonrival and nonexclusive, but beef is rival and exclusive.E) A) and D)
F) None of the above

Question 2

Figure 11-1 
-Refer to Figure 11-1. The box labeled C represents

Accepted Answer

A)  private goods.
B)  club goods.
C)  common resources.
D)  public goods.E) A) and B)
F) A) and C)

Question 3

What particular characteristic do private goods and common resources have in common?

Accepted Answer

Private goods and co...

Question 4

When a good is excludable,

Accepted Answer

A)  one person's use of the good diminishes another person's ability to use it.
B)  people can be prevented from using the good.
C)  no more than one person can use the good at the same time.
D)  everyone will be excluded from using the good.E) A) and C)
F) A) and B)

Question 5

A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it.

Accepted Answer

A) True 
 B)False

Question 6

Why is the commercial value of ivory a threat to the elephant, while the commercial value of beef is the cow's guardian?

Accepted Answer

A)  Elephants live in Africa, whereas cows live in the United States.
B)  Elephants are a common resource.
C)  Cows are a common resource.
D)  Cows are a public good.E) All of the above
F) A) and B) B

Question 7

Without government intervention, public goods tend to be

Accepted Answer

A)  overproduced and common resources tend to be overconsumed.
B)  overproduced and common resources tend to be underconsumed.
C)  underproduced and common resources tend to be overconsumed.
D)  underproduced and common resources tend to be underconsumed.E) All of the above
F) A) and D)

Question 8

Depending on congestion, national parks can be either a common resource or a public good.

Accepted Answer

A) True 
 B)False

Question 9

The enclosure movement in England in the 17th century represented an attempt to transform

Accepted Answer

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

Question 10

By driving onto a congested road for which no toll is charged, a driver

Accepted Answer

A)  contributes to the overuse of a common resource.
B)  contributes to a negative-externality problem.
C)  is inflicting additional time cost on all of the other drivers.
D)  All of the above are correct.E) A) and B)
F) B) and D)

Question 11

One way to place a value on human life is to examine the risks that people voluntarily take and how much they must be paid for taking them. What is the approximate value of a human life according to studies that use this approach?

Accepted Answer

According to these studies, th...

Question 12

It would always be a mistake to view

Accepted Answer

A)  a streetlight as a common resource.
B)  a nontoll road as a public good.
C)  the environment as a common resource.
D)  a lighthouse as a public good.E) None of the above
F) A) and B) A

Question 13

Which of the following quotations illustrates the Tragedy of the Commons?

Accepted Answer

A)  "A bird in the hand is worth two in the bush."
B)  "The only difference between the rich and other people is that the rich have more money."
C)  "What is common to many is taken least care of, for all men have greater regard for what is their own than for what they possess in common with others."
D)  "Anyone who is not a socialist before he is 30 has no heart; anyone who is still a socialist after he is 30 has no head."E) C) and D)
F) None of the above C

Question 14

When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Accepted Answer

A) True 
 B)False

Question 15

Suppose a human life is worth $10 million. Installing a better lighting system in the city park would reduce the risk of someone being murdered there from 3.5 to 2.9 percent over the life of the system. The city should install the new lighting system if its cost does not exceed

Accepted Answer

A)  $60,000.
B)  $290,000.
C)  $350,000.
D)  $600,000.E) A) and B)
F) A) and C)

Question 16

The Mansfield Public Library has a large number of books that anyone with a library card may borrow. Anyone can obtain a card for free. Because the number of copies of each book is limited, not everyone can have the same book at the same time. What type of good would the library books be classified as in this case?

Accepted Answer

A)  private goods
B)  club goods
C)  common resources
D)  public goodsE) C) and D)
F) A) and B)

Question 17

Public schools, parks, libraries, and roads are paid for largely through tax revenue because

Accepted Answer

A)  society finds them so valuable that citizens are happy to pay for their full cost.
B)  these goods create a free-rider problem.
C)  if they were funded privately, too many of these goods would be produced.
D)  All of the above are correct.E) None of the above
F) A) and C)

Question 18

When good X is produced, some people benefit. A free-rider problem arises when

Accepted Answer

A)  the number of people who benefit is small and it is impossible to prevent anyone from benefiting.
B)  the number of beneficiaries is small and it is possible to prevent some people from benefiting.
C)  the number of beneficiaries is large and it is impossible to prevent anyone from benefiting.
D)  the number of beneficiaries is large and it is possible to prevent some people from benefiting.E) B) and D)
F) All of the above

Question 19

Many species of animals are common resources, and many must be protected by law to keep them from extinction. Why is the cow not one of these endangered species even though there is such a high demand for beef?

Accepted Answer

A)  Cows reproduce at a high rate and have adapted well to their environment.
B)  Public policies protect cows from predators and diseases.
C)  Cows are privately owned, whereas many endangered species are owned by no one.
D)  There is a natural ecological balance between the birth rate of cows and human consumption.E) A) and B)
F) C) and D)

Question 20

One economically efficient way to eliminate the Tragedy of the Commons is to

Accepted Answer

A)  tax the owners of the resource.
B)  prevent anyone from using the resource.
C)  reduce the marginal social benefit of the resource.
D)  establish private ownership of the resource.E) None of the above
F) A) and B)

Exam 11: Public Goods and Common Resources

The commercial value of ivory is a threat to the elephant, but the commercial value of beef is a guardian of the cow. This is because

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1. The box labeled C represents

Correct Answer
verified

What particular characteristic do private goods and common resources have in common?

Correct Answer
verified
Private goods and co...
View Answer

When a good is excludable,

Correct Answer
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A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it.

Correct Answer
verified

Why is the commercial value of ivory a threat to the elephant, while the commercial value of beef is the cow's guardian?

Correct Answer
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B

Without government intervention, public goods tend to be

Correct Answer
verified

Depending on congestion, national parks can be either a common resource or a public good.

Correct Answer
verified

The enclosure movement in England in the 17^th century represented an attempt to transform

Correct Answer
verified

By driving onto a congested road for which no toll is charged, a driver

Correct Answer
verified

One way to place a value on human life is to examine the risks that people voluntarily take and how much they must be paid for taking them. What is the approximate value of a human life according to studies that use this approach?

Correct Answer
verified
According to these studies, th...
View Answer

It would always be a mistake to view

Correct Answer
verified
A

Which of the following quotations illustrates the Tragedy of the Commons?

Correct Answer
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C

When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Correct Answer
verified

Suppose a human life is worth $10 million. Installing a better lighting system in the city park would reduce the risk of someone being murdered there from 3.5 to 2.9 percent over the life of the system. The city should install the new lighting system if its cost does not exceed

Correct Answer
verified

Correct Answer
verified

Public schools, parks, libraries, and roads are paid for largely through tax revenue because

Correct Answer
verified

When good X is produced, some people benefit. A free-rider problem arises when

Correct Answer
verified

Many species of animals are common resources, and many must be protected by law to keep them from extinction. Why is the cow not one of these endangered species even though there is such a high demand for beef?

Correct Answer
verified

One economically efficient way to eliminate the Tragedy of the Commons is to

Correct Answer
verified

Exam 11: Public Goods and Common Resources

The commercial value of ivory is a threat to the elephant, but the commercial value of beef is a guardian of the cow. This is because

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1. The box labeled C represents

Correct AnswerverifiedShow Answer

What particular characteristic do private goods and common resources have in common?

Correct AnswerverifiedPrivate goods and co...View AnswerShow Answer

When a good is excludable,

Correct AnswerverifiedShow Answer

A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it.

Correct AnswerverifiedShow Answer

Why is the commercial value of ivory a threat to the elephant, while the commercial value of beef is the cow's guardian?

Correct AnswerverifiedB

Without government intervention, public goods tend to be

Correct AnswerverifiedShow Answer

Depending on congestion, national parks can be either a common resource or a public good.

Correct AnswerverifiedShow Answer

The enclosure movement in England in the 17th century represented an attempt to transform

Correct AnswerverifiedShow Answer

By driving onto a congested road for which no toll is charged, a driver

Correct AnswerverifiedShow Answer

One way to place a value on human life is to examine the risks that people voluntarily take and how much they must be paid for taking them. What is the approximate value of a human life according to studies that use this approach?

Correct AnswerverifiedAccording to these studies, th...View AnswerShow Answer

It would always be a mistake to view

Correct AnswerverifiedA

Which of the following quotations illustrates the Tragedy of the Commons?

Correct AnswerverifiedC

When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Correct AnswerverifiedShow Answer

Suppose a human life is worth $10 million. Installing a better lighting system in the city park would reduce the risk of someone being murdered there from 3.5 to 2.9 percent over the life of the system. The city should install the new lighting system if its cost does not exceed

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Public schools, parks, libraries, and roads are paid for largely through tax revenue because

Correct AnswerverifiedShow Answer

When good X is produced, some people benefit. A free-rider problem arises when

Correct AnswerverifiedShow Answer

Many species of animals are common resources, and many must be protected by law to keep them from extinction. Why is the cow not one of these endangered species even though there is such a high demand for beef?

Correct AnswerverifiedShow Answer

One economically efficient way to eliminate the Tragedy of the Commons is to

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Private goods and co...
View Answer

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B

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The enclosure movement in England in the 17^th century represented an attempt to transform

Correct Answer
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Correct Answer
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Correct Answer
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According to these studies, th...
View Answer

Correct Answer
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A

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C

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