Question 1

The free-rider problem applies

Accepted Answer

A)  to rival and excludable goods. 
B)  to common resources. 
C)  to nonrival and nonexcludable goods. 
D)  when marginal social benefit exceeds marginal private benefit. 
E)  when marginal social cost equals marginal private cost. 
A)  to rival and excludable goods. 
B)  to common resources. 
C)  to nonrival and nonexcludable goods. 
D)  when marginal social benefit exceeds marginal private benefit. 
E)  when marginal social cost equals marginal private cost.

Question 2

The efficient quantity of a public good is the quantity at which marginal benefit is

Accepted Answer

A)  greater than marginal cost by any amount. 
B)  less than marginal cost. 
C)  equal to marginal cost. 
D)  zero. 
E)  greater than marginal cost by the maximum amount. 
A)  greater than marginal cost by any amount. 
B)  less than marginal cost. 
C)  equal to marginal cost. 
D)  zero. 
E)  greater than marginal cost by the maximum amount.

Question 3

For any individual consumer,free-riding is

Accepted Answer

A)  common for private goods. 
B)  rational. 
C)  irrational. 
D)  impossible for public goods. 
E)  the same as paying a fair price for the good. 
A)  common for private goods. 
B)  rational. 
C)  irrational. 
D)  impossible for public goods. 
E)  the same as paying a fair price for the good.

Question 4

Under what conditions will the political process provide an inefficient amount of a public good?

Accepted Answer

The government will provide an inefficie

Question 5

In politics,the principle of minimum differentiation is the tendency toward

Accepted Answer

A)  identical policies to appeal to a minimum number of people. 
B)  different policies to appeal to a maximum number of people. 
C)  identical policies to appeal to a maximum number of people. 
D)  different policies to appeal to a minimum number of people. 
E)  a minimum number of policies in order to appeal to a maximum number of people. 
A)  identical policies to appeal to a minimum number of people. 
B)  different policies to appeal to a maximum number of people. 
C)  identical policies to appeal to a maximum number of people. 
D)  different policies to appeal to a minimum number of people. 
E)  a minimum number of policies in order to appeal to a maximum number of people.

Question 6

For a common resource,such as tuna fish in the ocean,no fisher has a ________ incentive to conserve the resource and use it at an ________ rate.

Accepted Answer

A)  private; inefficient 
B)  private; efficient 
C)  public; inefficient 
D)  public; efficient 
E)  personal; inefficient 
A)  private; inefficient 
B)  private; efficient 
C)  public; inefficient 
D)  public; efficient 
E)  personal; inefficient

Question 7

$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Tons of } \
\text { fish }
\end{array} & \begin{array} { c } 
\text { Marginal social } \
\text { benefit } \
\text { (dollars per hour) }
\end{array} \
\hline 100 & 700 \
\hline 200 & 600 \
\hline 300 & 500 \
\hline 400 & 400 \
\hline 500 & 300 \
\hline 600 & 200 \
\hline
\end{array}$$
-The table above shows the marginal social benefit of fishing in Mediterranean Sea.The marginal private cost of operating a fishing boat is the same for all producers,$300 per hour.The marginal social cost is twice the marginal private cost.If the government uses individual transferrable quotas to achieve the efficient outcome,what is the total quantity of fish caught?

Accepted Answer

A)  0 tons 
B)  100 tons 
C)  200 tons 
D)  300 tons 
E)  500 tons 
A)  0 tons 
B)  100 tons 
C)  200 tons 
D)  300 tons 
E)  500 tons

Question 8

A government policy that can lead to the efficient use of a common resource is

Accepted Answer

A)  a tax. 
B)  a production quota. 
C)  an emission fee. 
D)  a price ceiling. 
E)  None of the above answers is correct. 
A)  a tax. 
B)  a production quota. 
C)  an emission fee. 
D)  a price ceiling. 
E)  None of the above answers is correct.

Question 9

A good that is both rival and excludable is

Accepted Answer

A)  a good that is impossible to produce. 
B)  a private good. 
C)  a common resource. 
D)  a public good. 
E)  nonexistent because no good can be both rival and excludable. 
A)  a good that is impossible to produce. 
B)  a private good. 
C)  a common resource. 
D)  a public good. 
E)  nonexistent because no good can be both rival and excludable.

Question 10

Ocean fish are considered rival because a fish taken by one person is ________ for anyone else,and they are nonexcludable because it is ________ to prevent people from catching them.

Accepted Answer

A)  not available; difficult 
B)  not available; easy 
C)  available; difficult 
D)  available; easy 
E)  not available; fair 
A)  not available; difficult 
B)  not available; easy 
C)  available; difficult 
D)  available; easy 
E)  not available; fair

Question 11

A private,competitive market

Accepted Answer

A)  provides the efficient quantity of a public good. 
B)  allocates too few resources for a public good. 
C)  allocates too many resources for a public good. 
D)  can be relied upon to allocate resources efficiently both for private and public goods. 
E)  will allocate too many resources for a public good only if free riding occurs. 
A)  provides the efficient quantity of a public good. 
B)  allocates too few resources for a public good. 
C)  allocates too many resources for a public good. 
D)  can be relied upon to allocate resources efficiently both for private and public goods. 
E)  will allocate too many resources for a public good only if free riding occurs.

Question 12

How does the government determine the quota amount that will produce an efficient use of a common resource?

Accepted Answer

The government must determine the margin

Question 13

To determine the efficient quantity of a public good to supply,

Accepted Answer

A)  the private firms that will produce the good each produce the exact same quantity. 
B)  marginal benefit and marginal cost are equated, the same as is done to determine the efficient quantity of a private good. 
C)  total benefit is equated to total cost, the same as is done to determine the efficient quantity of a private good. 
D)  politicians use the principle of maximum differentiation. 
E)  marginal benefit must exceed marginal cost by as much as possible. 
A)  the private firms that will produce the good each produce the exact same quantity. 
B)  marginal benefit and marginal cost are equated, the same as is done to determine the efficient quantity of a private good. 
C)  total benefit is equated to total cost, the same as is done to determine the efficient quantity of a private good. 
D)  politicians use the principle of maximum differentiation. 
E)  marginal benefit must exceed marginal cost by as much as possible.

Question 14

The tragedy of the commons is the absence of incentives to

Accepted Answer

A)  correctly measure the marginal benefit. 
B)  prevent under use of the common resource. 
C)  prevent overuse and depletion of the common resource. 
D)  discover the resource. 
E)  prevent the free-rider problem. 
A)  correctly measure the marginal benefit. 
B)  prevent under use of the common resource. 
C)  prevent overuse and depletion of the common resource. 
D)  discover the resource. 
E)  prevent the free-rider problem.

Question 15

For a common resource,the equilibrium with no government intervention is such that ________ equals ________.

Accepted Answer

A)  marginal private benefit; marginal social cost 
B)  marginal social benefit; marginal private cost 
C)  marginal social cost; marginal social benefit 
D)  marginal external benefit; marginal external cost 
E)  marginal social benefit; marginal external cost 
A)  marginal private benefit; marginal social cost 
B)  marginal social benefit; marginal private cost 
C)  marginal social cost; marginal social benefit 
D)  marginal external benefit; marginal external cost 
E)  marginal social benefit; marginal external cost

Question 16

Which of the following represents an efficient quantity of a public good?

Accepted Answer

A)  the quantity at which the marginal cost of production is minimized 
B)  the quantity at which the number of free riders is maximized 
C)  the quantity at which the marginal benefit minus marginal cost is minimized 
D)  the quantity at which the marginal benefit is equal to the marginal cost 
E)  the quantity at which the marginal benefit exceeds the marginal cost by the maximum amount possible 
A)  the quantity at which the marginal cost of production is minimized 
B)  the quantity at which the number of free riders is maximized 
C)  the quantity at which the marginal benefit minus marginal cost is minimized 
D)  the quantity at which the marginal benefit is equal to the marginal cost 
E)  the quantity at which the marginal benefit exceeds the marginal cost by the maximum amount possible

Question 17

For a common resource,the marginal private cost curve ________ and the marginal social cost curve ________.

Accepted Answer

A)  slopes upward; slopes upward 
B)  slopes upward; slopes downward 
C)  slopes downward; slopes upward 
D)  slopes downward; slopes downward 
E)  is vertical; is horizontal 
A)  slopes upward; slopes upward 
B)  slopes upward; slopes downward 
C)  slopes downward; slopes upward 
D)  slopes downward; slopes downward 
E)  is vertical; is horizontal

Question 18

If you can prevent someone from consuming a good,that good is called

Accepted Answer

A)  rival. 
B)  nonrival. 
C)  excludable. 
D)  nonexcludable. 
E)  a public good. 
A)  rival. 
B)  nonrival. 
C)  excludable. 
D)  nonexcludable. 
E)  a public good.

Question 19

You are studying with a friend and your friend says,"private goods are excludable and nonrival,while public goods are nonexcludable and rival." Do you agree?

Accepted Answer

No,private goods are excludable and riva

Question 20

When use of a good decreases the quantity available for someone else,the good is

Accepted Answer

A)  rival. 
B)  nonrival. 
C)  excludable. 
D)  nonexcludable. 
E)  a public good. 
A)  rival. 
B)  nonrival. 
C)  excludable. 
D)  nonexcludable. 
E)  a public good.

The free-rider problem applies

The efficient quantity of a public good is the quantity at which marginal benefit is

For any individual consumer,free-riding is

Under what conditions will the political process provide an inefficient amount of a public good?

In politics,the principle of minimum differentiation is the tendency toward

For a common resource,such as tuna fish in the ocean,no fisher has a incentive to conserve the resource and use it at an rate.

A government policy that can lead to the efficient use of a common resource is

A good that is both rival and excludable is

Ocean fish are considered rival because a fish taken by one person is for anyone else,and they are nonexcludable because it is to prevent people from catching them.

A private,competitive market

How does the government determine the quota amount that will produce an efficient use of a common resource?

To determine the efficient quantity of a public good to supply,

The tragedy of the commons is the absence of incentives to

For a common resource,the equilibrium with no government intervention is such that equals .

Which of the following represents an efficient quantity of a public good?

For a common resource,the marginal private cost curve and the marginal social cost curve .

If you can prevent someone from consuming a good,that good is called

You are studying with a friend and your friend says,"private goods are excludable and nonrival,while public goods are nonexcludable and rival." Do you agree?

When use of a good decreases the quantity available for someone else,the good is

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 11: Public Goods and Common Resources

The free-rider problem applies

The efficient quantity of a public good is the quantity at which marginal benefit is

For any individual consumer,free-riding is

Under what conditions will the political process provide an inefficient amount of a public good?

In politics,the principle of minimum differentiation is the tendency toward

For a common resource,such as tuna fish in the ocean,no fisher has a ________ incentive to conserve the resource and use it at an ________ rate.

A government policy that can lead to the efficient use of a common resource is

A good that is both rival and excludable is

Ocean fish are considered rival because a fish taken by one person is ________ for anyone else,and they are nonexcludable because it is ________ to prevent people from catching them.

A private,competitive market

How does the government determine the quota amount that will produce an efficient use of a common resource?

To determine the efficient quantity of a public good to supply,

The tragedy of the commons is the absence of incentives to

For a common resource,the equilibrium with no government intervention is such that ________ equals ________.

Which of the following represents an efficient quantity of a public good?

For a common resource,the marginal private cost curve ________ and the marginal social cost curve ________.

If you can prevent someone from consuming a good,that good is called

You are studying with a friend and your friend says,"private goods are excludable and nonrival,while public goods are nonexcludable and rival." Do you agree?

When use of a good decreases the quantity available for someone else,the good is

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

For a common resource,such as tuna fish in the ocean,no fisher has a incentive to conserve the resource and use it at an rate.

Ocean fish are considered rival because a fish taken by one person is for anyone else,and they are nonexcludable because it is to prevent people from catching them.

For a common resource,the equilibrium with no government intervention is such that equals .

For a common resource,the marginal private cost curve and the marginal social cost curve .