Question 1

Hamburgers are example of goods that are:

Accepted Answer

A)  rival and excludable. 
B)  rival and nonexcludable. 
C)  nonrival and excludable. 
D)  nonrival and nonexcludable. 
A)  rival and excludable. 
B)  rival and nonexcludable. 
C)  nonrival and excludable. 
D)  nonrival and nonexcludable.

Question 2

Which of the following does NOT make the tragedy of commons for tuna even worse?

Accepted Answer

A)  Multiple countries tag and track tuna throughout the Pacific. 
B)  Many fishermen are involved in fishing tuna. 
C)  Governments subsidize fishing extensively. 
D)  Demand for tuna has decreased significantly. 
A)  Multiple countries tag and track tuna throughout the Pacific. 
B)  Many fishermen are involved in fishing tuna. 
C)  Governments subsidize fishing extensively. 
D)  Demand for tuna has decreased significantly.

Question 3

Schooling is a public good.

Accepted Answer

A) True 
 B)False

Question 4

In the long run, individual transferable quotas ______ the fishing catch in New Zealand.

Accepted Answer

A)  decreased 
B)  did not affect 
C)  increased 
D)  had an indeterminate effect upon 
A)  decreased 
B)  did not affect 
C)  increased 
D)  had an indeterminate effect upon

Question 5

Table: Mosquito Spraying
 
Refer to the table. A small town consists of three families who live in an area with lots of mosquitoes. The town is considering a spraying program to control the mosquito population. The marginal benefits of the spraying program are provided for each family, along with the marginal costs of the spraying program. How many times should the town spray for mosquitoes?

Accepted Answer

The town's marginal benefit for the firs

Question 6

It is estimated that by 2048, just 20% of the world's major seafood stock will remain.

Accepted Answer

A) True 
 B)False

Question 7

List at least two methods through which a country might solve a tragedy of the commons problem.

Accepted Answer

Some acceptable answers may be:(1) comma

Question 8

An example of a private good would be:

Accepted Answer

A)  a tornado siren. 
B)  a fireworks display. 
C)  a piece of fruit. 
D)  cable TV. 
A)  a tornado siren. 
B)  a fireworks display. 
C)  a piece of fruit. 
D)  cable TV.

Question 9

______ pioneered the use of individual transferable quotas.

Accepted Answer

A)  Australia 
B)  The United States of America 
C)  Japan 
D)  New Zealand 
A)  Australia 
B)  The United States of America 
C)  Japan 
D)  New Zealand

Question 10

Cable TV is an example of a:

Accepted Answer

A)  private good. 
B)  public good. 
C)  common resource. 
D)  nonrival private good. 
A)  private good. 
B)  public good. 
C)  common resource. 
D)  nonrival private good.

Question 11

Digital music is an example of a:

Accepted Answer

A)  private good 
B)  public good. 
C)  common resource. 
D)  nonrival private good. 
A)  private good 
B)  public good. 
C)  common resource. 
D)  nonrival private good.

Question 12

The environment is an example of a:

Accepted Answer

A)  private good. 
B)  public good. 
C)  common resource. 
D)  nonrival private good. 
A)  private good. 
B)  public good. 
C)  common resource. 
D)  nonrival private good.

Question 13

Which of the following is the explanation for why wild animals are often hunted to the point of extinction?

Accepted Answer

A)  cost-benefit analysis 
B)  public goods 
C)  tragedy of the commons 
D)  There is no known explanation. 
A)  cost-benefit analysis 
B)  public goods 
C)  tragedy of the commons 
D)  There is no known explanation.

Question 14

An uneducated grandmother who does not have children living with her but pays for public school education through her property tax is a:

Accepted Answer

A)  free rider. 
B)  nonrider. 
C)  forced rider. 
D)  absent rider. 
A)  free rider. 
B)  nonrider. 
C)  forced rider. 
D)  absent rider.

Question 15

Many individuals refer to education as a public good. How is education NOT a public good?

Accepted Answer

A)  Its acquisition is rival. 
B)  Its acquisition is excludable. 
C)  Its acquisition is both rival and excludable. 
D)  Its acquisition is usually rival and rarely excludable. 
A)  Its acquisition is rival. 
B)  Its acquisition is excludable. 
C)  Its acquisition is both rival and excludable. 
D)  Its acquisition is usually rival and rarely excludable.

Question 16

Cable TV is nonrival and excludable. Contact lenses are rival and excludable. Public goods are nonrival and nonexcludable. Nonrival private goods are excludable.

Accepted Answer

A) True 
 B)False

Question 17

Since everyone can be made better off by taxation to provide a public good, thus, everyone benefits.

Accepted Answer

A) True 
 B)False

Question 18

Markets tend to underproduce public goods, even though they are highly valued goods.

Accepted Answer

A) True 
 B)False

Question 19

The city government taxes its residents to pay for mosquito control. Betty is not happy about paying the tax, for mosquitoes never bite her. Betty is a:

Accepted Answer

A)  free rider. 
B)  forced rider. 
C)  taxed rider. 
D)  lonesome rider. 
A)  free rider. 
B)  forced rider. 
C)  taxed rider. 
D)  lonesome rider.

Question 20

The invisible hand guides the production of optimal quantities of public goods, just as it does for private goods.

Accepted Answer

A) True 
 B)False

Exam 19: Public Goods and the Tragedy of the Commons

Hamburgers are example of goods that are:

Which of the following does NOT make the tragedy of commons for tuna even worse?

Schooling is a public good.

In the long run, individual transferable quotas ______ the fishing catch in New Zealand.

It is estimated that by 2048, just 20% of the world's major seafood stock will remain.

List at least two methods through which a country might solve a tragedy of the commons problem.

An example of a private good would be:

______ pioneered the use of individual transferable quotas.

Cable TV is an example of a:

Digital music is an example of a:

The environment is an example of a:

Which of the following is the explanation for why wild animals are often hunted to the point of extinction?

An uneducated grandmother who does not have children living with her but pays for public school education through her property tax is a:

Many individuals refer to education as a public good. How is education NOT a public good?

Cable TV is nonrival and excludable. Contact lenses are rival and excludable. Public goods are nonrival and nonexcludable. Nonrival private goods are excludable.

Since everyone can be made better off by taxation to provide a public good, thus, everyone benefits.

Markets tend to underproduce public goods, even though they are highly valued goods.

The city government taxes its residents to pay for mosquito control. Betty is not happy about paying the tax, for mosquitoes never bite her. Betty is a:

The invisible hand guides the production of optimal quantities of public goods, just as it does for private goods.

The Big Ideas

The Power of Trade and Comparative

Supply and Demand

Equilibrium

Elasticity and Its Applications

Taxes and Subsidies

The Price System

Price Ceilings and Floors

International Trade

Externalities- When the Price Is Not Right

Costs and Profit Maximization Under Competition

Competition and the Invisible Hand

Monopoly

Price Discrimination

Oligopoly and Game Theory

Competing for Monopoly

Monopolistic Competition and Advertising

Labor Markets

Political Economy and Public Choice

Economics, Ethics, and Public Policy

Managing Incentives

Stock Markets and Personal Finance

Price Discrimination

Consumer Choice

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