Question 1

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Accepted Answer

A)   $1 million.
B)   $5 million.
C)   $10 million.
D)   $20 million.E) A) and B)
F) A) and C)

Question 2

Which of the following types of goods are rival in consumption?

Accepted Answer

A)   private goods and club goods
B)   private goods and common resources
C)   public goods and club goods
D)   public goods and common resourcesE) A) and C)
F) None of the above

Question 3

Figure 11-1

-Refer to Figure 11-1. Emma's use of good x does not affect anyone else's use of good x. Neither Emma nor anyone else can be prevented from using the good. Good x is an example of the type of good that belongs in

Accepted Answer

A)   Box A, which represents private goods.
B)   Box B, which represents common resources.
C)   Box C, which represents common resources.
D)   Box D, which represents public goods.E) All of the above
F) B) and D)

Question 4

The enclosure movement in England in the 17th century represented an attempt to transform

Accepted Answer

A)   a public good into a private good.
B)   a private good into a public good.
C)   a private good into a common resource.
D)   a common resource into a private good.E) B) and C)
F) None of the above

Question 5

Stewart is a lobsterman. His traps are

Accepted Answer

A)   private goods and the lobster he catches are common resources.
B)   private goods and the lobster he catches are public goods.
C)   rival in consumption and the lobster he catches are not rival in consumption.
D)   not rival in consumption and the lobster he catches are not rival in consumption.E) A) and B)
F) A) and C)

Question 6

Using a toll to reduce traffic when congestion is greatest is an example of a

Accepted Answer

A)   regulation solution.
B)   command-and-control policy.
C)   corrective tax.
D)   Coase theorem solution.E) A) and B)
F) None of the above

Question 7

Figure 11-1

-Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box D?

Accepted Answer

A)   a fireworks display in a town with many residents
B)   national defense
C)   general knowledge
D)   a lighthouseE) B) and C)
F) A) and B)

Question 8

Which of the following goods is the best example of a public good?

Accepted Answer

A)   garbage-collection services that are provided by a municipal government
B)   music that is broadcast over the airwaves by a privately-owned FM radio station
C)   electricity that is provided to farmhouses by a rural electric cooperative
D)   cable TV services that are provided by a privately-owned firm that is regulated by the government of the city in which it operatesE) None of the above
F) C) and D)

Question 9

The Tragedy of the Commons occurs because

Accepted Answer

A)   government property is most heavily used by the wealthy.
B)   everyone deserves an equal share of government property.
C)   social and private incentives differ.
D)   established property rights create competition.E) None of the above
F) A) and D)

Question 10

Which of the following statements is true of the tax on gasoline?

Accepted Answer

A)   The cost of collecting a gasoline tax outweighs the revenues raised by the tax.
B)   It is preferred to tolls as the best solution to road congestion.
C)   It discourages driving on noncongested roads, even though there is no congestion externality for these roads.
D)   Both b and c are correct.E) B) and C)
F) C) and D)

Question 11

A local park filled with picnickers is

Accepted Answer

A)   excludable and rival in consumption.
B)   excludable and not rival in consumption.
C)   not excludable and rival in consumption.
D)   not excludable and not rival in consumption.E) B) and C)
F) A) and D)

Question 12

Which of the following goods is rival and excludable?

Accepted Answer

A)   an uncongested toll road
B)   an uncongested nontoll road
C)   a congested nontoll road
D)   a congested toll roadE) A) and B)
F) A) and C)

Question 13

Suppose the government has enacted policies to influence the amount of good x that is supplied. These policies are most likely to improve the allocation of resources if good x is

Accepted Answer

A)   basic research.
B)   a congested toll road.
C)   spinach.
D)   clothing.E) A) and B)
F) A) and C)

Question 14

Most lighthouses are operated by the government because

Accepted Answer

A)   of the free-rider problem.
B)   lighthouses are no longer valued by society.
C)   most lighthouses are only tourist attractions in state and national parks.
D)   shipping companies would not be able to afford maintenance fees for lighthouses.E) A) and C)
F) All of the above

Question 15

Table 11-1
Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park.
 
-Refer to Table 11-1. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equally. If the residents vote to determine the size of park to build, basing their decision solely on their own willingness to pay and trying to maximize their own surplus) , what is the largest park size for which the majority of residents would vote "yes?"

Accepted Answer

A)   0 acres
B)   1 acre
C)   2 acres
D)   3 acresE) B) and C)
F) None of the above

Question 16

A variable toll on a road in Washington reached a high during the evening rush hour of $5.75. This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?

Accepted Answer

A)   For some consumers, the toll was less than the opportunity cost of the time they would have spent in traffic.
B)   For some consumers, the toll was more than the opportunity cost of the time they would have spent in traffic.
C)   No consumers would find this toll worth the time saved in traffic.
D)   Both a and b are correct.E) A) and C)
F) C) and D)

Question 17

Too few resources are devoted to the creation of knowledge because profit-seeking firms

Accepted Answer

A)   undervalue knowledge in their pursuit of revenues.
B)   overuse their patents.
C)   tend to free-ride on the knowledge that others have developed.
D)   tend to rely on existing employee knowledge.E) A) and B)
F) A) and C)

Question 18

Advocates of antipoverty programs claim that fighting poverty is a public good.

Accepted Answer

A) True 
 B)False

Question 19

Under which of the following scenarios would a park be considered a public good?

Accepted Answer

A)   Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables.
B)   Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use.
C)   Visitors can enter the park free of charge and there are always plenty of empty picnic tables.
D)   Visitors can enter the park free of charge, but frequently all of the picnic tables are in use.E) B) and C)
F) A) and B)

Question 20

Why is the commercial value of ivory a threat to the elephant, while the commercial value of beef is the cow's guardian?

Accepted Answer

A)   Elephants live in Africa, whereas cows live in the United States.
B)   Elephants are a common resource.
C)   Cows are a common resource.
D)   Cows are a public good.E) B) and D)
F) All of the above

Exam 11: Public Goods and Common Resources

Most lighthouses are operated by the government because

Correct Answer
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A local park filled with picnickers is

Correct Answer
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Which of the following types of goods are rival in consumption?

Correct Answer
verified

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Correct Answer
verified

Stewart is a lobsterman. His traps are

Correct Answer
verified

Too few resources are devoted to the creation of knowledge because profit-seeking firms

Correct Answer
verified

The Tragedy of the Commons occurs because

Correct Answer
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Under which of the following scenarios would a park be considered a public good?

Correct Answer
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Figure 11-1 -Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box D?

Correct Answer
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Which of the following statements is true of the tax on gasoline?

Correct Answer
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The enclosure movement in England in the 17th century represented an attempt to transform

Correct Answer
verified

Using a toll to reduce traffic when congestion is greatest is an example of a

Correct Answer
verified

A variable toll on a road in Washington reached a high during the evening rush hour of $5.75. This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?

Correct Answer
verified

Advocates of antipoverty programs claim that fighting poverty is a public good.

Correct Answer
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Suppose the government has enacted policies to influence the amount of good x that is supplied. These policies are most likely to improve the allocation of resources if good x is

Correct Answer
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Which of the following goods is rival and excludable?

Correct Answer
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Correct Answer
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Why is the commercial value of ivory a threat to the elephant, while the commercial value of beef is the cow's guardian?

Correct Answer
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Which of the following goods is the best example of a public good?

Correct Answer
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Figure 11-1 -Refer to Figure 11-1. Emma's use of good x does not affect anyone else's use of good x. Neither Emma nor anyone else can be prevented from using the good. Good x is an example of the type of good that belongs in

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Most lighthouses are operated by the government because

Correct AnswerverifiedShow Answer

A local park filled with picnickers is

Correct AnswerverifiedShow Answer

Which of the following types of goods are rival in consumption?

Correct AnswerverifiedShow Answer

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Correct AnswerverifiedShow Answer

Stewart is a lobsterman. His traps are

Correct AnswerverifiedShow Answer

Too few resources are devoted to the creation of knowledge because profit-seeking firms

Correct AnswerverifiedShow Answer

The Tragedy of the Commons occurs because

Correct AnswerverifiedShow Answer

Under which of the following scenarios would a park be considered a public good?

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box D?

Correct AnswerverifiedShow Answer

Which of the following statements is true of the tax on gasoline?

Correct AnswerverifiedShow Answer

The enclosure movement in England in the 17th century represented an attempt to transform

Correct AnswerverifiedShow Answer

Using a toll to reduce traffic when congestion is greatest is an example of a

Correct AnswerverifiedShow Answer

A variable toll on a road in Washington reached a high during the evening rush hour of $5.75. This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?

Correct AnswerverifiedShow Answer

Advocates of antipoverty programs claim that fighting poverty is a public good.

Correct AnswerverifiedShow Answer

Suppose the government has enacted policies to influence the amount of good x that is supplied. These policies are most likely to improve the allocation of resources if good x is

Correct AnswerverifiedShow Answer

Which of the following goods is rival and excludable?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why is the commercial value of ivory a threat to the elephant, while the commercial value of beef is the cow's guardian?

Correct AnswerverifiedShow Answer

Which of the following goods is the best example of a public good?

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1. Emma's use of good x does not affect anyone else's use of good x. Neither Emma nor anyone else can be prevented from using the good. Good x is an example of the type of good that belongs in

Correct AnswerverifiedShow Answer

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