Question 1

Pollution is a

Accepted Answer

A)   problem that is entirely unrelated to the parable called the Tragedy of the Commons.
B)   problem that cannot be remedied with regulations or corrective taxes.
C)   negative externality that can be viewed as a public-goods problem.
D)   negative externality that can be viewed as a common-resource problem.E) None of the above
F) A) and B)

Question 2

A mobile phone is a

Accepted Answer

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

Question 3

Figure 11-1
Rival in Consumption?
Yes No
Excludable? Yes Yes     No -Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box D? A)  a fireworks display in a town with many residents B)  national defense C)  general knowledge D)  a lighthouse" class="answers-bank-image d-inline" rel="preload" > Yes     No -Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box D? A)  a fireworks display in a town with many residents B)  national defense C)  general knowledge D)  a lighthouse" class="answers-bank-image d-inline" rel="preload" > No
-Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box D?

Accepted Answer

A)   a fireworks display in a town with many residents
B)   national defense
C)   general knowledge
D)   a lighthouseE) A) and B)
F) A) and C)

Question 4

Who among the following is a free rider?

Accepted Answer

A)   Ernie listens to National Public Radio, but does not contribute to any fundraising efforts.
B)   Bert takes the commuter rail to work, but he purchases the discounted monthly passes rather than buying tickets each day.
C)   Grover sends his 5 children to a private school rather than to the public school in his neighborhood.
D)   Oscar goes to Elmo's house to watch a football game on the local television channel.E) B) and C)
F) B) and D)

Question 5

85 Refer to Table 11-4. Suppose the cost to plant each tree is $220 and the 4 homeowners have agreed to split all tree-planting costs equally. Which homeowner(s)  would be in favor of planting at least 3 trees?
a. only Benitez
b. only Benitez and Chen
c. only Benitez, Chen, and Davis
d. Adams, Benitez, Chen, and Davis
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.51 - LO: 11-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Public Economics Public Choice
KEYWORDS: BLOOM'S: Application
-Refer to Table 11-4. Suppose the cost to plant each tree is $340 and the 4 homeowners have agreed to split all tree-planting costs equally. Which homeowner(s)  would be in favor of planting at least 1 tree?

Accepted Answer

A)   only Benitez
B)   only Benitez and Chen
C)   only Benitez, Chen, and Davis
D)   Adams, Benitez, Chen, and DavisE) A) and B)
F) None of the above

Question 6

The difference between specific knowledge and general knowledge is that

Accepted Answer

A)   the creation of general knowledge is usually more profitable for the creator.
B)   specific knowledge is excludable, while general knowledge is not excludable.
C)   general knowledge is excludable, while specific knowledge is not excludable.
D)   general knowledge is rival in consumption, while specific knowledge is not rival in consumption.E) C) and D)
F) A) and B)

Question 7

Table 11-4
There are four homes along Belmont Circle, which surrounds a small plot of land. The land currently has no trees, and the 4 homeowners -- Adams, Benitez, Chen, and Davis -- are considering the idea of contributing to a pool of money that will be used to plant up to 4 trees. The table represents their willingness to pay, that is, the maximum amount that each homeowner is willing to contribute toward each tree. 
-Refer to Table 11-4. Suppose the cost to plant each tree is $300. How many trees should be planted to maximize the total surplus of the four homeowners?

Accepted Answer

A)   1
B)   2
C)   3
D)   4E) A) and B)
F) A) and C)

Question 8

The old lyric "the best things in life are free"

Accepted Answer

A)   is not true for any goods.
B)   is even true for some goods that have a price.
C)   refers to goods provided by nature or the government.
D)   refers to goods provided by the market.E) A) and B)
F) A) and C)

Question 9

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

Accepted Answer

A)   a DVD
B)   a movie in an empty theater
C)   an outdoor movie shown at a public park
D)   a movie shown on cable television.E) B) and C)
F) C) and D)

Question 10

When property rights are not well established,

Accepted Answer

A)   private goods become public goods.
B)   markets fail to allocate resources efficiently.
C)   the distribution of private goods is unfair.
D)   government resources are used inefficiently.E) C) and D)
F) B) and D)

Question 11

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) All of the above
F) B) and C)

Question 12

Which of the following is not a common resource?

Accepted Answer

A)   clean air
B)   clean water
C)   open grazing land
D)   national defenseE) A) and D)
F) B) and C)

Question 13

What causes the Tragedy of the Commons?

Accepted Answer

A)   (i)  only
B)   (ii)  only
C)   (i)  and (ii)  only
D)   (i)  and (iii)  onlyE) A) and B)
F) None of the above

Question 14

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 15

National defense is provided by the government because

Accepted Answer

A)   it is impossible for private markets to produce public goods.
B)   products provided by the government are produced more efficiently.
C)   free-riders make it difficult for private markets to supply the socially optimal quantity.
D)   public goods increase government revenues.E) None of the above
F) B) and C)

Question 16

A free-rider is someone who receives the benefit of a good but avoids paying for it.

Accepted Answer

A) True 
 B)False

Question 17

All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

Accepted Answer

A) True 
 B)False

Question 18

Goods that are not excludable are usually

Accepted Answer

A)   higher priced than excludable goods.
B)   higher priced than rival goods.
C)   in short supply.
D)   free of charge.E) A) and B)
F) B) and D)

Question 19

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) None of the above

Question 20

Figure 11-1
Rival in Consumption?
Yes No
Excludable? Yes   No
-Refer to Figure 11-1. The box labeled C represents what type of good?

Accepted Answer

Box C repr...

Exam 11: Public Goods and Common Resources

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
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When property rights are not well established,

Correct Answer
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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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National defense is provided by the government because

Correct Answer
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A mobile phone is a

Correct Answer
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Goods that are not excludable are usually

Correct Answer
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The old lyric "the best things in life are free"

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Which of the following is not a common resource?

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Figure 11-1 Rival in Consumption? Yes No Excludable? Yes No -Refer to Figure 11-1. The box labeled C represents what type of good?

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Box C repr...
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Who among the following is a free rider?

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Pollution is a

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What causes the Tragedy of the Commons?

Correct Answer
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The difference between specific knowledge and general knowledge is that

Correct Answer
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Which of the following goods is rival in consumption and excludable?

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

A free-rider is someone who receives the benefit of a good but avoids paying for it.

Correct Answer
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All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

Correct Answer
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Figure 11-1 Rival in Consumption? Yes No Excludable? ^Yes No -Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box D?

Correct Answer
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Exam 11: Public Goods and Common Resources

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

When property rights are not well established,

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

National defense is provided by the government because

Correct AnswerverifiedShow Answer

A mobile phone is a

Correct AnswerverifiedShow Answer

Goods that are not excludable are usually

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The old lyric "the best things in life are free"

Correct AnswerverifiedShow Answer

Which of the following is not a common resource?

Correct AnswerverifiedShow Answer

Figure 11-1 Rival in Consumption? Yes No Excludable? Yes No -Refer to Figure 11-1. The box labeled C represents what type of good?

Correct AnswerverifiedBox C repr...View AnswerShow Answer

Who among the following is a free rider?

Correct AnswerverifiedShow Answer

Pollution is a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What causes the Tragedy of the Commons?

Correct AnswerverifiedShow Answer

The difference between specific knowledge and general knowledge is that

Correct AnswerverifiedShow Answer

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

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

A free-rider is someone who receives the benefit of a good but avoids paying for it.

Correct AnswerverifiedShow Answer

All goods that are excludable are also rival in consumption, but not all goods that are rival in consumption are excludable.

Correct AnswerverifiedShow Answer

Figure 11-1 Rival in Consumption? Yes No Excludable? Yes No -Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box D?

Correct AnswerverifiedShow Answer

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Box C repr...
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As described, good x is rival ...
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Figure 11-1 Rival in Consumption? Yes No Excludable? ^Yes No -Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box D?

Correct Answer
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