Question 1

Asteroid deflection 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 2

A good is excludable if:

Accepted Answer

A)  people who do not pay cannot be easily prevented from using the good. 
B)  one person's use of the good does not reduce the ability of another person to use the same good. 
C)  people who do not pay can be easily prevented from using the good. 
D)  it is Wi-Fi or a similar service. 
A)  people who do not pay cannot be easily prevented from using the good. 
B)  one person's use of the good does not reduce the ability of another person to use the same good. 
C)  people who do not pay can be easily prevented from using the good. 
D)  it is Wi-Fi or a similar service.

Question 3

Nonrival private goods are likely to have ________ fixed costs and ________ marginal costs.

Accepted Answer

A)  small; large 
B)  small; small 
C)  large; small 
D)  large; large 
A)  small; large 
B)  small; small 
C)  large; small 
D)  large; large

Question 4

New Zealand's individual transfer quotas:
I. work by limiting the amount of fish that each individual fisherman can fish.
II. resulted in reduced fish catches after they were established.
III. work just like the tradable pollution allowances in the United States.

Accepted Answer

A)  I only 
B)  I and III only 
C)  III only 
D)  I, II, and III 
A)  I only 
B)  I and III only 
C)  III only 
D)  I, II, and III

Question 5

List and describe the three methods that are used to minimize the tragedy of the commons and achieve an efficient use of a common resource.

Accepted Answer

(1) property rights: The tragedy of over

Question 6

Nonrival private goods are likely to be:

Accepted Answer

A)  overprovided by the market. 
B)  underprovided by the market. 
C)  nonrival and nonexclusive. 
D)  rival and nonexclusive. 
A)  overprovided by the market. 
B)  underprovided by the market. 
C)  nonrival and nonexclusive. 
D)  rival and nonexclusive.

Question 7

Hamburgers are 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 8

Tragedy of the commons problems have been solved through tradable allowances.

Accepted Answer

A) True 
 B)False

Question 9

Asteroid protection is an example of a private good.

Accepted Answer

A) True 
 B)False

Question 10

What features does the sun have in common with public goods?

Accepted Answer

A)  Like public goods, the sun is rival. 
B)  Like public goods, the sun is excludable. 
C)  Like public goods, the sun is nonrival and nonexcludable. 
D)  Like public goods, the sun is rival and nonexcludable. 
A)  Like public goods, the sun is rival. 
B)  Like public goods, the sun is excludable. 
C)  Like public goods, the sun is nonrival and nonexcludable. 
D)  Like public goods, the sun is rival and nonexcludable.

Question 11

Toilet paper is a rival good because:

Accepted Answer

A)  there is a lot of competition in the toilet paper market. 
B)  it is a substitute good for a bidet. 
C)  one person's use of toilet paper reduces the ability of another person to use the same sheets. 
D)  it is made from natural resources. 
A)  there is a lot of competition in the toilet paper market. 
B)  it is a substitute good for a bidet. 
C)  one person's use of toilet paper reduces the ability of another person to use the same sheets. 
D)  it is made from natural resources.

Question 12

The tragedy of the commons occurs when a good is:

Accepted Answer

A)  rival in consumption and excludable. 
B)  rival in consumption and not excludable. 
C)  not rival in consumption and excludable. 
D)  neither rival in consumption nor excludable. 
A)  rival in consumption and excludable. 
B)  rival in consumption and not excludable. 
C)  not rival in consumption and excludable. 
D)  neither rival in consumption nor excludable.

Question 13

Traditional radio stations provide their services free of charge to the listeners. Is this an efficient solution? How do providers make profits?

Accepted Answer

Yes, the efficient solution is to provid

Question 14

State highways are 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 15

Why is national defense a public good?
I. It is expensive to produce.
II. People who don't pay for national defense still benefit from having it.
III. One person's benefit from national defense doesn't reduce anyone else's benefit from it.
IV. It is provided by the government.

Accepted Answer

A)  I and IV only 
B)  II and III only 
C)  II, III, and IV only 
D)  I, II, and III only 
A)  I and IV only 
B)  II and III only 
C)  II, III, and IV only 
D)  I, II, and III only

Question 16

In a subdivision, all but one of the homeowners decided to pay for the services of a private security firm. The homeowner who didn't pay is a:

Accepted Answer

A)  private rider. 
B)  free rider. 
C)  forced rider. 
D)  public divider. 
A)  private rider. 
B)  free rider. 
C)  forced rider. 
D)  public divider.

Question 17

A good is nonexcludable if it is:

Accepted Answer

A)  easy to prevent people from using the good at low cost. 
B)  easy to make people use the good at low cost. 
C)  difficult to prevent people from using the good at low cost. 
D)  difficult to make people use the good at low cost. 
A)  easy to prevent people from using the good at low cost. 
B)  easy to make people use the good at low cost. 
C)  difficult to prevent people from using the good at low cost. 
D)  difficult to make people use the good at low cost.

Question 18

The tragedy of the commons is an externality problem.

Accepted Answer

A) True 
 B)False

Question 19

During the Middle Ages, many villages had areas reserved for families to take their cows or sheep to graze. All families were welcome to use this land without charge. This situation likely led to a(n):

Accepted Answer

A)  tragedy of the commons. 
B)  finite of proportions. 
C)  marketable public good. 
D)  exhaustive equilibrium. 
A)  tragedy of the commons. 
B)  finite of proportions. 
C)  marketable public good. 
D)  exhaustive equilibrium.

Question 20

Free riders are people who:

Accepted Answer

A)  enjoy public goods without paying for them. 
B)  pay for public goods but do not end up enjoying them. 
C)  pay for both private and public goods. 
D)  ride public transportation without paying. 
A)  enjoy public goods without paying for them. 
B)  pay for public goods but do not end up enjoying them. 
C)  pay for both private and public goods. 
D)  ride public transportation without paying.

Exam 19: Public Goods and the Tragedy of the Commons

Asteroid deflection is an example of a:

A good is excludable if:

Nonrival private goods are likely to have ________ fixed costs and ________ marginal costs.

New Zealand's individual transfer quotas: I. work by limiting the amount of fish that each individual fisherman can fish. II. resulted in reduced fish catches after they were established. III. work just like the tradable pollution allowances in the United States.

List and describe the three methods that are used to minimize the tragedy of the commons and achieve an efficient use of a common resource.

Nonrival private goods are likely to be:

Hamburgers are an example of a:

Tragedy of the commons problems have been solved through tradable allowances.

Asteroid protection is an example of a private good.

What features does the sun have in common with public goods?

Toilet paper is a rival good because:

The tragedy of the commons occurs when a good is:

Traditional radio stations provide their services free of charge to the listeners. Is this an efficient solution? How do providers make profits?

State highways are an example of a:

Why is national defense a public good? I. It is expensive to produce. II. People who don't pay for national defense still benefit from having it. III. One person's benefit from national defense doesn't reduce anyone else's benefit from it. IV. It is provided by the government.

In a subdivision, all but one of the homeowners decided to pay for the services of a private security firm. The homeowner who didn't pay is a:

A good is nonexcludable if it is:

The tragedy of the commons is an externality problem.

During the Middle Ages, many villages had areas reserved for families to take their cows or sheep to graze. All families were welcome to use this land without charge. This situation likely led to a(n):

Free riders are people who:

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

Filters

Nonrival private goods are likely to have fixed costs and marginal costs.