Question 1

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

Accepted Answer

A)   Coase theorem
B)   The Tragedy of the Commons
C)   The Wise Woman
D)   The Tortoise and the Hare

Question 2

Three business people meet for lunch at an Indian restaurant. They decide that each person will order an item off the menu, and they will share all dishes. They will split the cost of the final bill evenly among each of the people at the table. When the food is delivered to the table, each person faces incentives similar to the

Accepted Answer

A)   consumption of a common resource good.
B)   production of a public good.
C)   consumption of a club good.
D)   production of a private good.

Question 3

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Accepted Answer

A) True 
 B)False

Question 4

Knowledge that is patented is a

Accepted Answer

A)   public good, whereas knowledge that is not patented is a common resource.
B)   private good, whereas knowledge that is not patented is a club good.
C)   common resource, whereas knowledge that is not patented is a private good.
D)   club good, whereas knowledge that is not patented is a public good.

Question 5

What particular characteristic do public goods and club goods have in common?

Accepted Answer

Public goods and club goods ar...

Question 6

Both public goods and common resources are

Accepted Answer

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

Question 7

Mike Miller is the town manager of Medfield, a town with 50,000 residents. At a recent town meeting, several citizens proposed building a large public swimming pool in the center of town for all of the residents to enjoy. A survey of all 50,000 residents revealed that the pool would be worth $50 to each of them. Because the cost to build the swimming pool is only $1,000,000, Manager Miller arranges to have the pool built. Everyone in town enjoys the pool, but when Manager Miller asks for donations to pay for the pool, he only collects $250,000. Manager Miller soon realizes that

Accepted Answer

A)   the survey was conducted improperly.
B)   the cost of the pool exceeded the social benefits.
C)   the pool is a club good.
D)   most residents of the town are probably free-riders at the pool.

Question 8

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

Question 9

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.

Question 10

Neither public goods nor common resources are

Accepted Answer

A)   excludable, but only public goods are not rival in consumption.
B)   excludable, but only common resources are not rival in consumption.
C)   rival in consumption, but only public goods are not excludable.
D)   rival in consumption, but only common resources are not excludable.

Question 11

In a cost-benefit analysis, the value of a human life is sometimes calculated on the basis of

Accepted Answer

A)   the risks that a person voluntarily exposes herself to in her job and/or recreational choices.
B)   the value of each individual's assets.
C)   the belief that human life is priceless.
D)   the amount of resources required to adequately sustain life.

Question 12

The Tragedy of the Commons

Accepted Answer

A)   occurs most often with public goods.
B)   is only applicable to shared grazing rights among sheep herders.
C)   is eliminated when property rights are assigned to individuals.
D)   occurs when social incentives are in line with private incentives.

Question 13

Figure 11-1

-Refer to Figure 11-1. A bottle of soda is an example of the type of good represented by Box

Accepted Answer

A)   A.
B)   B.
C)   C.
D)   D.

Question 14

When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Accepted Answer

A) True 
 B)False

Question 15

What particular characteristic do private goods and common resources have in common?

Accepted Answer

Private goods and co...

Question 16

In deciding whether a good is a public good, one must determine the

Accepted Answer

A)   incomes of those who benefit from the good.
B)   value of the external benefits that accrue to resource owners.
C)   excludability of the good.
D)   All of the above are correct.

Question 17

For all types of goods that are not private goods, the market fails to allocate resources efficiently because _________________.

Accepted Answer

property rights are not well e...

Question 18

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States. Any farmer with land above the aquifer can at present pump water out of it. Which of the following statements about the aquifer is correct?

Accepted Answer

A)   The aquifer is a public good which must be publicly owned to be used efficiently.
B)   The aquifer is a private good which must be privately owned to be used efficiently.
C)   The aquifer is a common resource which will be overused if no one owns it.
D)   The aquifer is a club good which should be left as it is.

Question 19

Most goods in the economy are

Accepted Answer

A)   club goods.
B)   common resources.
C)   public goods.
D)   private goods.

Question 20

Which of the following statements is not correct?

Accepted Answer

A)   Medical research can be an example of a public good.
B)   The private market will tend to undersupply public goods.
C)   The free-rider problem occurs when a good is nonexcludable.
D)   All goods provided by the government are public goods.

Exam 11: Public Goods and Common Resources

Most goods in the economy are

Correct Answer
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In deciding whether a good is a public good, one must determine the

Correct Answer
verified

Correct Answer
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For all types of goods that are not private goods, the market fails to allocate resources efficiently because _________________.

Correct Answer
verified
property rights are not well e...
View Answer

Neither public goods nor common resources are

Correct Answer
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Both public goods and common resources are

Correct Answer
verified

What particular characteristic do public goods and club goods have in common?

Correct Answer
verified
Public goods and club goods ar...
View Answer

The Tragedy of the Commons

Correct Answer
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When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Correct Answer
verified

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States. Any farmer with land above the aquifer can at present pump water out of it. Which of the following statements about the aquifer is correct?

Correct Answer
verified

Knowledge that is patented is a

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

Correct Answer
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Which of the following statements is not correct?

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

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1. A bottle of soda is an example of the type of good represented by Box

Correct Answer
verified

Correct Answer
verified

What particular characteristic do private goods and common resources have in common?

Correct Answer
verified
Private goods and co...
View Answer

In a cost-benefit analysis, the value of a human life is sometimes calculated on the basis of

Correct Answer
verified

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

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Most goods in the economy are

Correct AnswerverifiedShow Answer

In deciding whether a good is a public good, one must determine the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For all types of goods that are not private goods, the market fails to allocate resources efficiently because _________________.

Correct Answerverifiedproperty rights are not well e...View AnswerShow Answer

Neither public goods nor common resources are

Correct AnswerverifiedShow Answer

Both public goods and common resources are

Correct AnswerverifiedShow Answer

What particular characteristic do public goods and club goods have in common?

Correct AnswerverifiedPublic goods and club goods ar...View AnswerShow Answer

The Tragedy of the Commons

Correct AnswerverifiedShow Answer

When a highway is congested, giving rise to negative externalities, it is appropriate to view the highway as a common resource.

Correct AnswerverifiedShow Answer

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States. Any farmer with land above the aquifer can at present pump water out of it. Which of the following statements about the aquifer is correct?

Correct AnswerverifiedShow Answer

Knowledge that is patented is a

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

Which of the following statements is not correct?

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

In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1. A bottle of soda is an example of the type of good represented by Box

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What particular characteristic do private goods and common resources have in common?

Correct AnswerverifiedPrivate goods and co...View AnswerShow Answer

In a cost-benefit analysis, the value of a human life is sometimes calculated on the basis of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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property rights are not well e...
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Public goods and club goods ar...
View Answer

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Private goods and co...
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