Exam 11: Public Goods and Common Resources

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.A quota to prevent the overuse of the cod sets the catch equal to ________.

Fish in the ocean are an example of ________ because they are ________.

A basketball game aired as a pay-per-view show by your local cable network and to which you can invite your friends to watch is a ________ good.

A good is a private good if

Suppose a public good is provided in an economy with only two consumers,Popeye and Captain Hook.If Popeye values the public good at $4,000 per year,and Captain Hook values it at $3,000 per year,the economy's marginal benefit of the public good per year is

When two competitors try to make themselves identical,they are

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.If property rights to the pasture are granted to a farmer so that the farmer owns the pasture,the farmer raises ________.

In which of the following cases does the tragedy of the commons occur? i.cattle grazing on private ranches ii.catching lobsters off the coast of Florida iii.raising salmon on salmon farms iv.using legal services provided by the courts

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.The efficient outcome is ________.

-The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo,Oklahoma.Police protection is a public good.If the city of Hugo hires 5 officers,marginal

Minutes of fireworks Anita's (dollars per minute) Steve's (dollars per minute) 16 \ 20 \ 28 17 18 25 18 16 22 19 14 19 20 12 16 -The table above shows Anita and Steve's marginal benefits for the annual 4th of July fireworks show at City Park.If Anita and Steve are the only two people in the economy and the marginal cost to produce one minute of fireworks is $28,what is the efficient quantity of fireworks?

What are the differences between public goods and private goods?

Which of the following is the best example of a common resource?

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.A quota to prevent the overuse of the common pasture sets the number of goats to be raised equal to ________.

The free-rider problem is associated with

The fact that technology prevents Sam in Nevada from using the email account of Samantha in Virginia means that email is an example of

Why are private firms unable to produce public goods?

Quantity (police cars on duty) Paul's marginal benefit (dollars per car) Art's marginal benefit (dollars per car) 1 50 90 2 40 75 3 30 60 4 20 45 5 10 30 -The table above shows the marginal benefit that arises from providing police protection in an economy of two people,Paul and Art. a.Construct a table of the economy's marginal benefit from providing police protection. b.What is the economy's marginal benefit from having 3 police cars on duty?

A common resource is

Why are fish in the ocean an example of a resource that suffers from the tragedy of the commons but cattle grazing in a farmer's pasture do not suffer from the tragedy of the commons?