Question 1

On holiday weekends thousands of people hike on national park hiking trails.Some trails become so overcrowded the benefit or value of hiking diminishes to zero.Suppose that the National Park Service institutes a variable fee structure.On weekdays when the trails get little use,the fee is zero.On normal weekends,the fee is $15 per person.On holiday weekends,the fee is $35 per person.The fee system is an example of a

Accepted Answer

A)  subsidy.
B)  quota.
C)  police state.
D)  pricing system.E) A) and B)
F) B) and C)

Question 2

Excludability is the property of a good whereby

Accepted Answer

A)  one person's use diminishes other people's use.
B)  a person can be prevented from using it.
C)  a good is private, not public.
D)  a good is public, not private.E) A) and B)
F) A) and D)

Question 3

Which of the following quotations illustrates the Tragedy of the Commons?

Accepted Answer

A)  "Too many cooks spoil the pot."
B)  "The only difference between the rich and other people is that the rich have more money."
C)  "What is common to many is taken least care of, for all men have greater regard for what is their own than for what they possess in common with others."
D)  "Anyone who is not a socialist before he is 30 has no heart; anyone who is still a socialist after he is 30 has no head."E) None of the above
F) A) and B)

Question 4

Which of the following would be considered a common resource?

Accepted Answer

A)  cable television
B)  bottled natural mineral water
C)  uncongested toll roads
D)  fish in the oceanE) B) and C)
F) All of the above

Question 5

The Tragedy of the Commons describes

Accepted Answer

A)  government regulation that is necessary to combat externalities.
B)  overuse of a common resource relative to its economically efficient use.
C)  the nonrivalry feature of a common resource.
D)  an effective cost-benefit analysis.E) A) and D)
F) B) and C)

Question 6

Suppose that everyone prefers to live in a society without poverty.Further suppose that some private charities are successful in reducing poverty.People who do not contribute to the charities

Accepted Answer

A)  receive no external benefit from private antipoverty programs.
B)  decrease the reliance of individuals on antipoverty programs.
C)  can free ride on the generosity of others.
D)  are most likely to be in favor of government-sponsored programs.E) B) and C)
F) A) and B)

Question 7

Common resources are both

Accepted Answer

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

Question 8

Table 11-2
There are no lobstering restrictions on Point Judith Sound, RI. A lobsterman on Point Judith Sound can catch 100 lobsters per day, provided he has the sound to himself. Two lobstermen can catch 95 lobsters apiece per day, and three can catch 90 apiece per day. Other numbers are given by the table:
  
The opportunity cost of a day on Point Judith Sound is 25 lobsters per lobsterman. That is, the alternative activity is as valuable as 25 lobsters.
-Refer to Table 11-2.How many lobsters will be caught per day on Point Judith sound?

Accepted Answer

A)  50 lobsters
B)  100 lobsters
C)  225 lobsters
D)  375 lobstersE) B) and C)
F) B) and D)

Question 9

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) All of the above

Question 10

Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws.Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws,we can likely conclude that

Accepted Answer

A)  international laws making it illegal to sell grizzly bear paws are likely to be very effective at eliminating these offerings at Hong Kong restaurants.
B)  higher penalties for poaching grizzly bears will prevent poachers from killing.
C)  there are likely to be very few grizzly bear poachers.
D)  allowing individuals to own and raise grizzly bears for meat would likely reduce the threat of extinction to grizzly bear populations.E) All of the above
F) A) and B)

Question 11

A cheeseburger is

Accepted Answer

A)  excludable and rival in consumption.
B)  excludable and nonrival in consumption.
C)  nonexcludable and rival in consumption.
D)  nonexcludable and nonrival in consumption.E) None of the above
F) A) and B)

Question 12

Some economists estimate the value of human life by analyzing the risks that people are voluntarily willing to take and the compensation they require for those risks.Which of the following is an example of a career that economists would study?

Accepted Answer

A)  Certified Public Accounts at tax time
B)  window washers working on high-rise buildings
C)  economists
D)  professional golfersE) A) and D)
F) None of the above

Question 13

The government provides public goods because

Accepted Answer

A)  private markets are incapable of producing public goods.
B)  free-riders make it difficult for private markets to supply the socially optimal quantity.
C)  markets are always better off with some government oversight.
D)  external benefits will accrue to private producers.E) None of the above
F) All of the above

Question 14

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Accepted Answer

A)  those who stand to gain have an incentive to tell the truth.
B)  those who stand to lose have an incentive to exaggerate their true costs.
C)  answers to the survey questions will always be downwardly biased.
D)  not everyone asked will be using the highway.E) B) and D)
F) B) and C)

Question 15

Who among the following is a free rider?

Accepted Answer

A)  Barry steals candy from the store where he works.
B)  Betty rides to work with Sally, but she pays Sally for gasoline and other travel-related expenses.
C)  Joe drives 20,000 miles a year on public streets, but he pays no more in property taxes than Sam, who only drives 1,000 miles.
D)  Fred watches many public television programs, but he has never sent in a contribution to the station.E) B) and D)
F) None of the above

Question 16

When the value of a human life is calculated according to the economic contribution a person makes to society (as reflected in her income-earning potential) ,the troubling implication is that

Accepted Answer

A)  it is possible for a retired or disabled person to have no value to society.
B)  economists are more valuable than entrepreneurs.
C)  retired people who volunteer in their communities are more valuable than physicians.
D)  all workers have equal value.E) A) and B)
F) None of the above

Question 17

A lighthouse is typically considered to be a public good because

Accepted Answer

A)  the owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse.
B)  there is rarely another lighthouse nearby to provide competition.
C)  a nearby port authority cannot avoid paying fees to the lighthouse owner.
D)  all passing ships are able to enjoy the benefits of the lighthouse without paying.E) All of the above
F) A) and B)

Question 18

An example of a common resource would be

Accepted Answer

A)  cable TV service.
B)  a tornado siren.
C)  clothing.
D)  the environment.E) None of the above
F) A) and D)

Question 19

If Toby and Pete are the only two fishermen in town and neither is bothered by the other's fishing,the lake they fish in is not a common resource.

Accepted Answer

A) True 
 B)False

Question 20

Which parable describes the problem of wild animals that are hunted to the point of extinction?

Accepted Answer

A)  Coase theorem
B)  Tragedy of the Commons
C)  Cost-benefit analysis
D)  Clean Air ActE) None of the above
F) A) and B)

Exam 11: Public Goods and Common Resources

Who among the following is a free rider?

Correct Answer
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Suppose that everyone prefers to live in a society without poverty.Further suppose that some private charities are successful in reducing poverty.People who do not contribute to the charities

Correct Answer
verified

Which of the following quotations illustrates the Tragedy of the Commons?

Correct Answer
verified

The Tragedy of the Commons describes

Correct Answer
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Correct Answer
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An example of a common resource would be

Correct Answer
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A lighthouse is typically considered to be a public good because

Correct Answer
verified

The government provides public goods because

Correct Answer
verified

Which parable describes the problem of wild animals that are hunted to the point of extinction?

Correct Answer
verified

If Toby and Pete are the only two fishermen in town and neither is bothered by the other's fishing,the lake they fish in is not a common resource.

Correct Answer
verified

Correct Answer
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Some economists estimate the value of human life by analyzing the risks that people are voluntarily willing to take and the compensation they require for those risks.Which of the following is an example of a career that economists would study?

Correct Answer
verified

Excludability is the property of a good whereby

Correct Answer
verified

Which of the following would be considered a common resource?

Correct Answer
verified

The Tragedy of the Commons occurs because

Correct Answer
verified

A cheeseburger is

Correct Answer
verified

When the value of a human life is calculated according to the economic contribution a person makes to society (as reflected in her income-earning potential) ,the troubling implication is that

Correct Answer
verified

Common resources are both

Correct Answer
verified

Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws.Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws,we can likely conclude that

Correct Answer
verified

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Who among the following is a free rider?

Correct AnswerverifiedShow Answer

Suppose that everyone prefers to live in a society without poverty.Further suppose that some private charities are successful in reducing poverty.People who do not contribute to the charities

Correct AnswerverifiedShow Answer

Which of the following quotations illustrates the Tragedy of the Commons?

Correct AnswerverifiedShow Answer

The Tragedy of the Commons describes

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An example of a common resource would be

Correct AnswerverifiedShow Answer

A lighthouse is typically considered to be a public good because

Correct AnswerverifiedShow Answer

The government provides public goods because

Correct AnswerverifiedShow Answer

Which parable describes the problem of wild animals that are hunted to the point of extinction?

Correct AnswerverifiedShow Answer

If Toby and Pete are the only two fishermen in town and neither is bothered by the other's fishing,the lake they fish in is not a common resource.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Some economists estimate the value of human life by analyzing the risks that people are voluntarily willing to take and the compensation they require for those risks.Which of the following is an example of a career that economists would study?

Correct AnswerverifiedShow Answer

Excludability is the property of a good whereby

Correct AnswerverifiedShow Answer

Which of the following would be considered a common resource?

Correct AnswerverifiedShow Answer

The Tragedy of the Commons occurs because

Correct AnswerverifiedShow Answer

A cheeseburger is

Correct AnswerverifiedShow Answer

When the value of a human life is calculated according to the economic contribution a person makes to society (as reflected in her income-earning potential) ,the troubling implication is that

Correct AnswerverifiedShow Answer

Common resources are both

Correct AnswerverifiedShow Answer

Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws.Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws,we can likely conclude that

Correct AnswerverifiedShow Answer

Simply asking people how much they value a highway is not a reliable way of measuring the benefits and costs because

Correct AnswerverifiedShow Answer

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