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Exam 17: Public Goods and Common Resources

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Question 41

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When goods are rival in consumption and excludable,perfectly competitive markets:

A) will consistently produce more than the efficient quantity of the good.
B) will produce an efficient quantity of the good.
C) will consistently produce less than the efficient quantity of the good.
D) will find that consumers are unwilling to purchase the good.

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Question 42

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Use the following to answer questions : Scenario: Alexander and Vanessa Alexander and Vanessa benefit from scientific research.Alexander's marginal private benefit from such research is given by the equation MPB = 200 - Q,where Q refers to the amount of research undertaken and MPB captures the marginal private benefit Alexander gets from different marginal quantities.Meanwhile,Vanessa's marginal private benefit from such research is given by the equation MPB = 100 - Q.The marginal social cost of such research is constant at $100. -(Scenario: Alexander and Vanessa) Use Scenario: Alexander and Vanessa.If Alexander and Vanessa are the only two individuals in a society,which equation CORRECTLY represents the marginal social benefit (MSB) of scientific research?

A) MSB = 300 - 2Q
B) MSB = 100 - Q
C) MSB = 200 - Q
D) MSB = 100

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Question 43

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Use the following to answer questions : Figure: Market Failure -(Figure: Market Failure) Use Figure: Market Failure.In the figure,if production in this competitive market is at quantity F:

Bluefin tuna travel in schools throughout the world's oceans.Fishing boats from many nations harvest bluefin tuna as the schools migrate through their national waters.The schools of bluefin tuna are BEST described as a(n) :

If the market produces an efficient level of a good,then we know that the good must be _____ and _____ in consumption.

Which good is MOST likely an artificially scarce good?

Since the public safety that a police force provides is _____ in consumption,the efficient price _____.

Use the following to answer questions : $\text {Table: Marginal Benefit, Cost, }$ $\text {and Consumer Surplus}$ $\begin{array}{l} \begin{array}{lr}\hline&\text { Individual }\\\text { Consumer } & \text { Marginal Benefit } \\\hline \text { Adriana } & \$ 2 \\\text { Bhagesh } & 15 \\\text { Chizuko } & 1 \\\text { Denzel } & 10 \\\text { Emma } & 5 \\\text { Frank } & 4\end{array}\end{array}$ -(Table: Marginal Benefit,Cost,and Consumer Surplus) Use Table: Marginal Benefit,Cost,and Consumer Surplus.The table shows six consumers' willingness to pay for one iTunes download.If the marginal social cost is constant at _____,then _____ consumers will purchase this good,and consumer surplus is _____.

For a common resource,the marginal social benefit at the quantity provided by a private market is _____ the marginal social cost.

Goods that are nonrival in consumption and nonexcludable are _____ goods.

A software programme is similar to an apple in that it is _____,but it is also similar to public safety in that it is _____.

The BEST example of an artificially scarce good is:

A good is MOST likely to be artificially scarce if:

In London,any motorist entering a particular area in the city centre during certain specified times must pay a congestion fee equal to £11.50 per day,with fines for noncompliance rising to as high as £130.The congestion fee is:

If policy makers provide only enough tradable permits to provide efficient use of a common resource,only those who _____ will use the resource.

When the market does NOT result in an efficient allocation of scarce resources,economists say that there has been:

Public goods should be produced up to the point at which the marginal cost of production equals:

Although most citizens have access to police protection,they also take measures,such as putting locks on their doors,to protect themselves.For most citizens,police protection is a(n) _____ good,while self-protection is a(n) _____ good.

Whenever a species is threatened with extinction,it is likely that:

If a good is subject to the free-rider problem and an inefficiently high level of consumption,the good must be a(n) :