Exam 19: Public Goods and the Tragedy of the Commons

The tragedy of the commons is that common resources tend to be overproduced by the government.

Which of the following statements is TRUE? I. In order for society to have a sufficient level of national defense, the government must tax the public to raise funds for a standing army. II. For every 100 people that use a public good, approximately 500 people are prevented from using it. III. People do not have an incentive to voluntarily pay for nonexcludable goods.

A free rider is someone who receives the benefit of a good and avoids paying for it.

Which of the following explains why it is difficult to determine the optimal quantity of public goods that the government should produce?

Ocean tuna is an example of a:

Which of the following goods is NOT rival and NOT excludable?

The tragedy of commons is more likely to apply to:

Which of the following is a list of nonexcludable, nonrival only?

A fireworks display is an example of a good that is excludable.

Some animals are going extinct because of a lack of property rights over these animals.

One way in which entrepreneurs have found to profit from the private production of public goods is through:

Which of the following is rival and NOT excludable?

Jeans are an example of a private good.

Uncongested, nontoll roads are a good example of a:

A good is nonexcludable if only people who pay for the good may use the good.

Which of the following is an example of a nonrival private good?

A free rider enjoys the benefits of a private good without paying a share of the costs.

Which country created property rights to catching fish in 1986?

A consumer would likely choose to buy asteroid protection for $100 over jeans for $100.

Which of the following is a list of public goods only?