Exam 11: Public Goods and Common Resources

Government policy can potentially raise economic well-being

Both private goods and club goods are

In what sense is it meaningful to say that fighting poverty is a public good?

A cheeseburger is a

Why is cable TV reception regarded as a club good?

Private goods and club goods have in common that they are excludable, but are different in that private goods are rival while club goods are not rival in consumption.

Table 11-3 This table describes the police protection demands for three equal sized groups of people in Safetyville. The second, third, and fourth columns show the number of person-hours of police protection per day that a group will demand for a given price the first column). -Refer to Table 11-3. What is the value of the 99th unit of police protection in Safetyville?

A common theme among examples of market failure is

Markets do not ensure that the air we breathe is clean because

Figure 11-1 -Refer to Figure 11-1. The box labeled D represents

An example of the "Tragedy of the Commons" is litter in the picnic area of a local park.

Goods that are rival in consumption and excludable would be considered

Which of the following pairs of goods includes a good that is excludable and rival in consumption as well as a good that is excludable and not rival in consumption?

Table 11-4 There are four homes along Belmont Circle, which surrounds a small plot of land. The land currently has no trees, and the 4 homeowners -- Adams, Benitez, Chen, and Davis -- are considering the idea of contributing to a pool of money that will be used to plant up to 4 trees. The table represents their willingness to pay, that is, the maximum amount that each homeowner is willing to contribute toward each tree. -Refer to Table 11-4. Suppose the cost to plant each tree is $380 and the 4 homeowners have agreed to split all tree-planting costs equally. Which homeowners) would be opposed to planting any trees?

Bob owns 5 acres of land. Bob sells the land to a real estate developer who builds a subdivision with 10 houses. The land is an example of a good that is

85 Refer to Table 11-4. Suppose the cost to plant each tree is $220 and the 4 homeowners have agreed to split all tree-planting costs equally. Which homeowners) would be in favor of planting at least 3 trees? a. only Benitez b. only Benitez and Chen c. only Benitez, Chen, and Davis d. Adams, Benitez, Chen, and Davis ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Challenging -Refer to Table 11-4. Suppose the cost to plant each tree is $340 and the 4 homeowners have agreed to split all tree-planting costs equally. Which homeowners) would be in favor of planting at least 1 tree?

The difference between specific knowledge and general knowledge is that

Miguel, Maria, and Marcos all would like a place to sit while waiting at their children's bus stop. The neighborhood association is considering installing several park benches at the bus stop. Miguel values the benches at $20, Maria at $30, and Marcos at $40. The park benches and labor for installation cost $100. If Miguel, Maria, and Marcos are the only residents who value the benches, what should the neighborhood association do?

The value and cost of goods are easiest to determine when the goods are

Figure 11-1 -Refer to Figure 11-1. Which of the following statements is correct?