Question 1

Figure 11-1
 
-Refer to Figure 11-1.Once good x is provided,policymakers need to be concerned about how much of it is used.Good x is an example of the type of good represented by Box

Accepted Answer

A)   A.
B)   B.
C)   C.
D)   D.E) A) and C)
F) None of the above

Question 2

Table 11-5
A small strip mall contains four retail stores,and crime has recently been on the increase in the neighborhood of the strip mall.The owners of the four stores - Stores A,B,C,and D - are considering contributing to a pool of money that will be used to hire up to 4 security guards.The table represents their willingness to pay,that is,the maximum amount that each store owner is willing to contribute,per day,to hire each security guard.
 
-Refer to Table 11-5.Suppose the cost to hire each individual guard is $100 per day.How many guards should be hired to maximize the total surplus of the four store owners?

Accepted Answer

A)   1
B)   2
C)   3
D)   4E) A) and B)
F) A) and C)

Question 3

Figure 11-1
 
-Refer to Figure 11-1.The box labeled C represents what type of good?

Accepted Answer

Box C repr...

Question 4

Which of the following is not an advantage of road tolls as a way to reduce traffic?

Accepted Answer

A)   They charge people based on consumption.
B)   They can help bring usage closer to its optimal level.
C)   Rates can differ according to the time of day.
D)   The administrative costs of collecting the tolls are almost zero,especially for local roads.E) None of the above
F) A) and B)

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

Figure 11-1
 
-Refer to Figure 11-1.In which box - A,B,C,or D - does each of the following types of roads belong? (Consider each type of road separately. )
• an uncongested toll road
• an uncongested nontoll road
• a congested toll road
• a congested nontoll road

Accepted Answer

An uncongested toll road belon...

Question 7

Table 11-5
A small strip mall contains four retail stores,and crime has recently been on the increase in the neighborhood of the strip mall.The owners of the four stores - Stores A,B,C,and D - are considering contributing to a pool of money that will be used to hire up to 4 security guards.The table represents their willingness to pay,that is,the maximum amount that each store owner is willing to contribute,per day,to hire each security guard.
 
-Refer to Table 11-5.Suppose the cost to hire each individual guard is $75 per day.Then total surplus for the 4 store owners is

Accepted Answer

A)   $75 if 1 guard is hired.
B)   $110 if 2 guards are hired.
C)   $130 if 3 guards are hired.
D)   $105 if 4 guards are hired.E) C) and D)
F) B) and D)

Question 8

Which of the following is not a way for the government to solve the problem of excessive use of common resources?

Accepted Answer

A)   regulation
B)   taxes
C)   turning the common resource into a public good
D)   turning the common resource into a private goodE) B) and C)
F) A) and B)

Question 9

The Great Lakes are

Accepted Answer

A)   private goods.
B)   club goods.
C)   common resources.
D)   public goods.E) C) and D)
F) A) and D)

Question 10

For private goods allocated in markets,

Accepted Answer

A)   prices guide the decisions of buyers and sellers and these decisions lead to an efficient allocation of resources.
B)   prices guide the decisions of buyers and sellers and these decisions lead to an inefficient allocation of resources.
C)   the government guides the decisions of buyers and sellers and these decisions lead to an efficient allocation of resources.
D)   the government guides the decisions of buyers and sellers and these decisions lead to an inefficient allocation of resources.E) A) and C)
F) All of the above

Question 11

Labor is a

Accepted Answer

A)   private good.
B)   club good.
C)   common resource.
D)   public good.E) All of the above
F) C) and D)

Question 12

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) None of the above

Question 13

The Tragedy of the Commons can be corrected by

Accepted Answer

A)   conducting a cost-benefit analysis.
B)   assigning property rights to individuals.
C)   providing government subsidies for the resource.
D)   making certain everyone in the economy has access to the resource.E) A) and B)
F) A) and C)

Question 14

The Tragedy of the Commons occurs because

Accepted Answer

A)   a common resource is rival in consumption.
B)   a common resource is underutilized.
C)   crimes are committed in public places.
D)   common resources are subject to exclusionary rules.E) C) and D)
F) A) and D)

Question 15

Both private goods and club goods are

Accepted Answer

A)   rival in consumption.
B)   nonrival in consumption.
C)   excludable.
D)   nonexcludable.E) C) and D)
F) A) and B)

Question 16

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 $300.How many trees should be planted to maximize the total surplus of the four homeowners?

Accepted Answer

A)   1
B)   2
C)   3
D)   4E) All of the above
F) None of the above

Question 17

In the Tragedy of the Commons,joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Accepted Answer

A) True 
 B)False

Question 18

A toll on a congested road is in essence

Accepted Answer

A)   an interstate highway tax.
B)   a Department of Motor Vehicles tax.
C)   a gasoline tax.
D)   a corrective tax.E) A) and D)
F) B) and C)

Question 19

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.We might expect that

Accepted Answer

A)   over time,the aquifer is likely to be overused.
B)   each farmer has a sufficient incentive to conserve the water.
C)   state governments have an incentive to insure that their farmers do not overuse the water.
D)   resources would be used more efficiently if the government paid for the pumps farmers use to get the water.E) None of the above
F) B) and C)

Question 20

The overuse of a common resource relative to its economically efficient use is called

Accepted Answer

A)   the free rider problem.
B)   the Tragedy of the Commons.
C)   a public good.
D)   cost-benefit analysis.E) B) and C)
F) None of the above

Exam 11: Public Goods and Common Resources

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Figure 11-1 -Refer to Figure 11-1.The box labeled C represents what type of good?

Correct Answer
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Box C repr...
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The Tragedy of the Commons occurs because

Correct Answer
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Labor is a

Correct Answer
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For private goods allocated in markets,

Correct Answer
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Which of the following is not an advantage of road tolls as a way to reduce traffic?

Correct Answer
verified

The Tragedy of the Commons can be corrected by

Correct Answer
verified

Correct Answer
verified

Most lighthouses are operated by the government because

Correct Answer
verified

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.We might expect that

Correct Answer
verified

The overuse of a common resource relative to its economically efficient use is called

Correct Answer
verified

A toll on a congested road is in essence

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1.Once good x is provided,policymakers need to be concerned about how much of it is used.Good x is an example of the type of good represented by Box

Correct Answer
verified

Correct Answer
verified

In the Tragedy of the Commons,joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1.In which box - A,B,C,or D - does each of the following types of roads belong? (Consider each type of road separately. ) • an uncongested toll road • an uncongested nontoll road • a congested toll road • a congested nontoll road

Correct Answer
verified
An uncongested toll road belon...
View Answer

Which of the following is not a way for the government to solve the problem of excessive use of common resources?

Correct Answer
verified

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.

Correct Answer
verified

The Great Lakes are

Correct Answer
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Both private goods and club goods are

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.The box labeled C represents what type of good?

Correct AnswerverifiedBox C repr...View AnswerShow Answer

The Tragedy of the Commons occurs because

Correct AnswerverifiedShow Answer

Labor is a

Correct AnswerverifiedShow Answer

For private goods allocated in markets,

Correct AnswerverifiedShow Answer

Which of the following is not an advantage of road tolls as a way to reduce traffic?

Correct AnswerverifiedShow Answer

The Tragedy of the Commons can be corrected by

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Most lighthouses are operated by the government because

Correct AnswerverifiedShow Answer

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.We might expect that

Correct AnswerverifiedShow Answer

The overuse of a common resource relative to its economically efficient use is called

Correct AnswerverifiedShow Answer

A toll on a congested road is in essence

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.Once good x is provided,policymakers need to be concerned about how much of it is used.Good x is an example of the type of good represented by Box

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the Tragedy of the Commons,joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes.

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.In which box - A,B,C,or D - does each of the following types of roads belong? (Consider each type of road separately. ) • an uncongested toll road • an uncongested nontoll road • a congested toll road • a congested nontoll road

Correct AnswerverifiedAn uncongested toll road belon...View AnswerShow Answer

Which of the following is not a way for the government to solve the problem of excessive use of common resources?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The Great Lakes are

Correct AnswerverifiedShow Answer

Both private goods and club goods are

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Box C repr...
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An uncongested toll road belon...
View Answer

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