Question 1

Most goods are:

Accepted Answer

A)   exclusive.
B)   public goods.
C)   rival in consumption.
D)   nonrival in consumption.E) A) and B)
F) C) and D)

Question 2

One "design principle" that makes informal,community-based solutions to public goods and common resource problems more effective is:

Accepted Answer

A)   clear distinctions between who is and is not allowed to access the resource.
B)   the participation of resource users in setting the rules for use.
C)   the ability of users to monitor one another.
D)   All of these are important to the effectiveness of community-based solutions.E) A) and D)
F) A) and C)

Question 3

If the marginal benefit were greater than the cost of a good:

Accepted Answer

A)   consumers could increase their utility by buying more.
B)   consumers could increase their utility by buying less.
C)   producers should decrease production.
D)   social net benefit would be maximized.E) B) and D)
F) A) and B)

Question 4

The free-rider problem is triggered by being:

Accepted Answer

A)   nonexcludable.
B)   rival in consumption.
C)   excludable and rival in consumption.
D)   excludable and nonrival in consumption.E) A) and B)
F) None of the above

Question 5

If the government runs an ad campaign to shame litterers,they are:

Accepted Answer

A)   wasting a lot of money.
B)   trying to get individuals to internalize the negative externality created by their decision to litter.
C)   using protectionist policy to help the trash-collecting industry.
D)   All of these statements are true.E) All of the above
F) C) and D)

Question 6

Traffic lights would be considered:

Accepted Answer

A)   a common resource.
B)   a private good.
C)   a public good.
D)   an artificially scarce good.E) A) and D)
F) C) and D)

Question 7

One way the government decides how to pay for a public good is:

Accepted Answer

A)   the ease of collecting payout.
B)   if they can make the good excludable and charge its users.
C)   the transfer of surplus.
D)   All of these are ways the government allocates payment of public goods.E) A) and C)
F) B) and C)

Question 8

Public goods,when left to the private market will be:

Accepted Answer

A)   undersupplied.
B)   over consumed.
C)   under consumed.
D)   oversupplied.E) All of the above
F) B) and C)

Question 9

If those who consumed common resources were subject to a tax that was equal to the external costs that they imposed due to the negative externality created:

Accepted Answer

A)   an efficient level would be reached.
B)   total surplus would be maximized for the whole society.
C)   individuals would consume less.
D)   All of these statements are true.E) None of the above
F) All of the above

Question 10

Wikipedia is an example of a:

Accepted Answer

A)   a public good.
B)   a private good.
C)   a common resource.
D)   an artificially scarce resource.E) B) and C)
F) None of the above

Question 11

Which of the following is not an example of a public good that the government has made excludable?

Accepted Answer

A)   Toll roads.
B)   City buses.
C)   State colleges.
D)   Fire Protection.E) A) and B)
F) A) and C)

Question 12

The type of good that is most likely to be subject to market failure is:

Accepted Answer

A)   a public good.
B)   a private good.
C)   an uncommon resource.
D)   a factor of productionE) B) and D)
F) None of the above

Question 13

In a functioning market,people will buy a good up to the point where:

Accepted Answer

A)   the marginal benefit of each unit is equal to the marginal cost of each unit.
B)   the total benefit of the good is equal to the total cost of the good.
C)   the marginal benefit of the last unit is equal to the marginal cost of that unit.
D)   they can no longer afford it.E) None of the above
F) B) and C)

Question 14

When a good is not easily excludable,what people pay for it will:

Accepted Answer

A)   reflect the real value they place on it.
B)   exactly equal the social benefit of the good.
C)   not necessarily reflect the real value they place on it.
D)   be greater than the social benefit of the good.E) C) and D)
F) B) and C)

Question 15

The free rider problem is caused by the:

Accepted Answer

A)   nonexcludability of a good leading to the undersupply of it.
B)   incentive to oversupply the good since it is nonrival in consumption.
C)   "rivalness" in consumption of a good leading to the overconsumption of that good.
D)   "rivalness" in consumption of a good leading to the undersupply of it.E) B) and C)
F) None of the above

Question 16

A smart phone would be considered:

Accepted Answer

A)   a common resource.
B)   a private good.
C)   a public good.
D)   an artificially scarce good.E) B) and C)
F) All of the above

Question 17

When the government bans a good:

Accepted Answer

A)   the cost of breaking the ban needs to be sufficiently low in order to be effective.
B)   it doesn't need to change the trade-offs consumers face.
C)   it will only be effective if it can be easily enforced.
D)   it should get approval from the community before exacting the ban to be more effective.E) B) and C)
F) A) and D)

Question 18

Goods that are rival in consumption and excludable are:

Accepted Answer

A)   a common resource.
B)   a private good.
C)   a public good.
D)   an artificially scarce good.E) A) and B)
F) A) and C)

Question 19

In 2009,the Nobel Prize in economics was awarded for work on the effectiveness of social norms in the management of commonly held property to:

Accepted Answer

A)   Arthur Pigou.
B)   Gary Becker.
C)   Elinor Ostrom.
D)   Ronald Coase.E) B) and C)
F) A) and D)

Question 20

When the government bans a good:

Accepted Answer

A)   it is attempting to solve the nonexcludability problem.
B)   it makes acquiring that good illegal.
C)   the cost of breaking the ban changes the trade-offs consumers face.
D)   All of these statements are true.E) B) and C)
F) None of the above

Exam 19: Public Goods and Common Resources

One "design principle" that makes informal,community-based solutions to public goods and common resource problems more effective is:

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A smart phone would be considered:

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The free rider problem is caused by the:

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Traffic lights would be considered:

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Most goods are:

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Wikipedia is an example of a:

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One way the government decides how to pay for a public good is:

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If the government runs an ad campaign to shame litterers,they are:

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The type of good that is most likely to be subject to market failure is:

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The free-rider problem is triggered by being:

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Goods that are rival in consumption and excludable are:

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If those who consumed common resources were subject to a tax that was equal to the external costs that they imposed due to the negative externality created:

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When a good is not easily excludable,what people pay for it will:

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When the government bans a good:

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In 2009,the Nobel Prize in economics was awarded for work on the effectiveness of social norms in the management of commonly held property to:

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If the marginal benefit were greater than the cost of a good:

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Public goods,when left to the private market will be:

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In a functioning market,people will buy a good up to the point where:

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When the government bans a good:

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Which of the following is not an example of a public good that the government has made excludable?

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