Question 1

Advocates of antipoverty programs believe that fighting poverty

Accepted Answer

A)  can make everyone better off.
B)  is most successfully accomplished by charities.
C)  is most efficiently accomplished by the market.
D)  reduces the well-being of tax payers.E) B) and D)
F) A) and C)

Question 2

A traffic light at an intersection is

Accepted Answer

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

Question 3

Most goods in the economy are

Accepted Answer

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

Question 4

At the local park there is a playground that anyone may use. There is rarely anyone using the playground, so children who use the playground receive full enjoyment from its use. The playground is

Accepted Answer

A)  rival in consumption and is excludable.
B)  not rival in consumption, but is excludable.
C)  rival in consumption, but is not excludable.
D)  not rival in consumption nor is it excludable.E) A) and D)
F) A) and B)

Question 5

When a good is rival in consumption,

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)  an unlimited number of people can use the good at the same time.
D)  everyone will be excluded from obtaining the good.E) A) and B)
F) B) and C)

Question 6

A free-rider problem exists for any good that is not

Accepted Answer

A)  rival in consumption.
B)  a private good.
C)  free.
D)  excludable.E) A) and B)
F) B) and C)

Question 7

Free goods are usually efficiently allocated without government intervention.

Accepted Answer

A) True 
 B)False

Question 8

A free rider problem arises when

Accepted Answer

A)  there are very few beneficiaries and exclusion of any one of them is possible.
B)  there are many beneficiaries and exclusion of any one of them is possible.
C)  there are many beneficiaries and exclusion of any one of them is impossible.
D)  there are very few beneficiaries and they all try to use the good simultaneously.E) A) and D)
F) B) and C)

Question 9

Both public goods and common resources are

Accepted Answer

A)  rival in consumption.
B)  nonrival in consumption.
C)  excludable.
D)  nonexcludable.E) C) and D)
F) A) and D)

Question 10

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 is a case of market failure.
C)  In deciding not to produce a fireworks display in Yankeeville, private individuals and private firms made decisions that were privately rational but socially inefficient.
D)  All of the above are correct.E) B) and C)
F) A) and B)

Question 11

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Accepted Answer

A)  Both the American drivers and the Soviet shoppers are consuming products at prices that do not represent the full costs of the products.
B)  Both the American drivers and the Soviet shoppers can purchase as much as they want at the market price.
C)  Both the American drivers and the Soviet shoppers could avoid waiting if the prices were lowered.
D)  American drivers and Soviet shoppers have nothing in common.E) B) and C)
F) None of the above

Question 12

Private decisions about consumption of common resources and production of public goods usually lead to an

Accepted Answer

A)  efficient allocation of resources and external effects.
B)  efficient allocation of resources and no external effects.
C)  inefficient allocation of resources and external effects.
D)  inefficient allocation of resources and no external effects.E) A) and B)
F) A) and C)

Question 13

Governments that chose to make endangered elephants private goods have met with more success protecting elephants than governments that chose to make killing elephants illegal.

Accepted Answer

A) True 
 B)False

Exam 11: Public Goods and Common Resources

Private decisions about consumption of common resources and production of public goods usually lead to an

Correct Answer
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Free goods are usually efficiently allocated without government intervention.

Correct Answer
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A free rider problem arises when

Correct Answer
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A traffic light at an intersection is

Correct Answer
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When a good is rival in consumption,

Correct Answer
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Governments that chose to make endangered elephants private goods have met with more success protecting elephants than governments that chose to make killing elephants illegal.

Correct Answer
verified

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Correct Answer
verified

Both public goods and common resources are

Correct Answer
verified

A free-rider problem exists for any good that is not

Correct Answer
verified

Advocates of antipoverty programs believe that fighting poverty

Correct Answer
verified

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
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At the local park there is a playground that anyone may use. There is rarely anyone using the playground, so children who use the playground receive full enjoyment from its use. The playground is

Correct Answer
verified

Most goods in the economy are

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Private decisions about consumption of common resources and production of public goods usually lead to an

Correct AnswerverifiedShow Answer

Free goods are usually efficiently allocated without government intervention.

Correct AnswerverifiedShow Answer

A free rider problem arises when

Correct AnswerverifiedShow Answer

A traffic light at an intersection is

Correct AnswerverifiedShow Answer

When a good is rival in consumption,

Correct AnswerverifiedShow Answer

Governments that chose to make endangered elephants private goods have met with more success protecting elephants than governments that chose to make killing elephants illegal.

Correct AnswerverifiedShow Answer

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Correct AnswerverifiedShow Answer

Both public goods and common resources are

Correct AnswerverifiedShow Answer

A free-rider problem exists for any good that is not

Correct AnswerverifiedShow Answer

Advocates of antipoverty programs believe that fighting poverty

Correct AnswerverifiedShow 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

At the local park there is a playground that anyone may use. There is rarely anyone using the playground, so children who use the playground receive full enjoyment from its use. The playground is

Correct AnswerverifiedShow Answer

Most goods in the economy are

Correct AnswerverifiedShow Answer

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