Question 1

Roads can be considered either public goods or common resources,depending on how congested they are.

Accepted Answer

A) True 
 B)False

Question 2

One benefit of the patent system is that it encourages the production of technical knowledge.

Accepted Answer

A) True 
 B)False

Question 3

When an infinite value is placed on human life,policymakers who rely on cost-benefit analysis

Accepted Answer

A)  are forced to pursue any project in which a single human life is saved.
B)  are likely to make decisions that optimally allocate society's scarce resources.
C)  would not pursue any public project that would not save human life.
D)  would be forced to rely on private markets to provide public goods.E) A) and B)
F) All of the above

Question 4

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) A) and B)
F) A) and C)

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)  Vistors 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 D)
F) All of the above

Question 6

The pollution market failure is an example of the free rider problem.

Accepted Answer

A) True 
 B)False

Question 7

Goods that are not rival in consumption include both

Accepted Answer

A)  private goods and common resources.
B)  club goods and public goods.
C)  common resources and public goods.
D)  private goods and club goods.E) A) and D)
F) All of the above

Question 8

Aristotle writes,"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." In this statement,Aristotle is referring to the free-rider problem that occurs when a person receives the benefit of a good without paying for it.

Accepted Answer

A) True 
 B)False

Question 9

Using a toll to reduce traffic when congestion is greatest is an example of a

Accepted Answer

A)  regulation solution.
B)  command-and-control policy.
C)  corrective tax.
D)  Coase theorem solution.E) A) and C)
F) A) and D)

Question 10

Suppose that everyone prefers to live in a society without poverty.Further suppose that some private charities are successful in reducing poverty.People who do not contribute to the charities

Accepted Answer

A)  receive no external benefit from private antipoverty programs.
B)  decrease the reliance of individuals on antipoverty programs.
C)  can free ride on the generosity of others.
D)  are most likely to be in favor of government-sponsored programs.E) B) and D)
F) None of the above

Question 11

Free goods are usually efficiently allocated without government intervention.

Accepted Answer

A) True 
 B)False

Question 12

Elephants are endangered,but cows are not because

Accepted Answer

A)  cows are not as valuable as elephants.
B)  elephants are a common resource,while cows are private goods.
C)  cows are a common resource,while elephants are private goods.
D)  it is legal to kill cows but not elephants.E) B) and C)
F) B) and D)

Question 13

Consider the following problems: overcrowded public highways,overfishing in the ocean,polluted air,and the near-extinction of the wild rhinoceros.What do these problems have in common?

Accepted Answer

A)  Private markets could easily solve them if governments left the markets alone.
B)  They would all go away if the government sponsored an intensive public-information campaign.
C)  They are all the result of a failure to establish clear property rights over something of value.
D)  They are all the result of a failure of corrective taxes.E) A) and B)
F) None of the above

Question 14

The government often intervenes when private markets fail to provide an optimal level of certain goods and services.For example,the government imposes an excise tax on gasoline to account for the negative externality that drivers impose on one another.Why might the private market not reach the socially optimal level of traffic without the help of government?

Accepted Answer

It is possible that everyone can agree t...

Question 15

Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?

Accepted Answer

No one owns the wild salmon,while privat...

Question 16

Because public goods are

Accepted Answer

A)  excludable,people have an incentive to be free riders.
B)  excludable,people do not have an incentive to be free riders.
C)  not excludable,people have an incentive to be free riders.
D)  not excludable,people do not have an incentive to be free riders.E) A) and B)
F) A) and C)

Question 17

Which parable describes the problem of wild animals that are hunted to the point of extinction?

Accepted Answer

A)  Coase theorem
B)  Tragedy of the Commons
C)  Cost-benefit analysis
D)  Clean Air ActE) A) and B)
F) A) and C)

Question 18

Nine friends who love the beach decide to pool their financial resources and equally share the cost of a one-week house rental by the ocean.Suppose that the beach outside of the house becomes more congested when the nine additional people join the other beachgoers.Which of the following statements is not correct?

Accepted Answer

A)  Use of the beach by the nine new beachgoers will yield a negative externality.
B)  The town can reduce the congestion externality by raising the fee to access the beach.
C)  An increase in the fee to access the beach could be viewed as a corrective tax on the externality of congestion.
D)  Each of the nine friends would have been better off staying at home.E) All of the above
F) C) and D)

Question 19

A free rider is a person who

Accepted Answer

A)  will only purchase a product on sale.
B)  receives the benefit of a good but avoids paying for it.
C)  can produce a good at no cost.
D)  rides public transit regularly.E) A) and D)
F) None of the above

Question 20

Each of the following is likely to be a successful way for the government to solve the problem of overuse of a common resource except

Accepted Answer

A)  regulating the use or consumption of the common resource.
B)  taxing the use or consumption of the common resource.
C)  selling the common resource to a private entity.
D)  asking individuals to voluntarily reduce their use of the resource.E) A) and D)
F) B) and C)

Exam 11: Public Goods and Common Resources

Free goods are usually efficiently allocated without government intervention.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
It is possible that everyone can agree t...
View Answer

Roads can be considered either public goods or common resources,depending on how congested they are.

Correct Answer
verified

One benefit of the patent system is that it encourages the production of technical knowledge.

Correct Answer
verified

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

Correct Answer
verified

Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?

Correct Answer
verified
No one owns the wild salmon,while privat...
View Answer

Correct Answer
verified

Each of the following is likely to be a successful way for the government to solve the problem of overuse of a common resource except

Correct Answer
verified

Which parable describes the problem of wild animals that are hunted to the point of extinction?

Correct Answer
verified

Suppose that everyone prefers to live in a society without poverty.Further suppose that some private charities are successful in reducing poverty.People who do not contribute to the charities

Correct Answer
verified

Consider the following problems: overcrowded public highways,overfishing in the ocean,polluted air,and the near-extinction of the wild rhinoceros.What do these problems have in common?

Correct Answer
verified

When an infinite value is placed on human life,policymakers who rely on cost-benefit analysis

Correct Answer
verified

The pollution market failure is an example of the free rider problem.

Correct Answer
verified

Using a toll to reduce traffic when congestion is greatest is an example of a

Correct Answer
verified

Because public goods are

Correct Answer
verified

Goods that are not rival in consumption include both

Correct Answer
verified

A free rider is a person who

Correct Answer
verified

Correct Answer
verified

Elephants are endangered,but cows are not because

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Free goods are usually efficiently allocated without government intervention.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIt is possible that everyone can agree t...View AnswerShow Answer

Roads can be considered either public goods or common resources,depending on how congested they are.

Correct AnswerverifiedShow Answer

One benefit of the patent system is that it encourages the production of technical knowledge.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why do wild salmon populations face the threat of extinction while goldfish populations are in no such danger?

Correct AnswerverifiedNo one owns the wild salmon,while privat...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Each of the following is likely to be a successful way for the government to solve the problem of overuse of a common resource except

Correct AnswerverifiedShow Answer

Which parable describes the problem of wild animals that are hunted to the point of extinction?

Correct AnswerverifiedShow Answer

Suppose that everyone prefers to live in a society without poverty.Further suppose that some private charities are successful in reducing poverty.People who do not contribute to the charities

Correct AnswerverifiedShow Answer

Consider the following problems: overcrowded public highways,overfishing in the ocean,polluted air,and the near-extinction of the wild rhinoceros.What do these problems have in common?

Correct AnswerverifiedShow Answer

When an infinite value is placed on human life,policymakers who rely on cost-benefit analysis

Correct AnswerverifiedShow Answer

The pollution market failure is an example of the free rider problem.

Correct AnswerverifiedShow Answer

Using a toll to reduce traffic when congestion is greatest is an example of a

Correct AnswerverifiedShow Answer

Because public goods are

Correct AnswerverifiedShow Answer

Goods that are not rival in consumption include both

Correct AnswerverifiedShow Answer

A free rider is a person who

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Elephants are endangered,but cows are not because

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
It is possible that everyone can agree t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
No one owns the wild salmon,while privat...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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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