Question 1

The U.S.government protects fish,a common resource,by

Accepted Answer

A)   subsidizing the fishing industry.
B)   heavily taxing competing industries.
C)   selling fishing licenses and regulating fish lengths.
D)   None of the above is correct.E) B) and C)
F) A) and D)

Question 2

Without government intervention,public goods tend to be

Accepted Answer

A)   overproduced and common resources tend to be overconsumed.
B)   overproduced and common resources tend to be underconsumed.
C)   underproduced and common resources tend to be overconsumed.
D)   underproduced and common resources tend to be underconsumed.E) A) and B)
F) B) and D)

Question 3

The privately-owned school system in Smalltown has a virtually unlimited capacity.It accepts all applicants and operates on both tuition and private donations.Although every resident places value on having an educated community,the school's revenues have suffered lately due to a large decline in private donations from the elderly population.Since the benefit that each citizen receives from having an educated community is a public good,which of the following would not be correct?

Accepted Answer

A)   The free-rider problem causes the private market to undersupply education to the community.
B)   The government can potentially help the market reach a socially optimal level of education.
C)   A tax increase to pay for education could potentially make the community better off.
D)   The private market is the best way to supply education.E) A) and C)
F) B) and D)

Question 4

Goods that are rival in consumption and excludable would be considered

Accepted Answer

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

Question 5

Excessive fishing occurs because

Accepted Answer

A)   each individual fisherman has little incentive to maintain the species for the next year.
B)   fishermen rely on government managers to worry about fish populations.
C)   fishermen are unionized,so they are not concerned with externalities.
D)   fishermen have other marketable skills and do not fear exploitation of fish reserves.E) B) and D)
F) All of the above

Question 6

The degradation of the environment from litter is a

Accepted Answer

A)   a negative externality.
B)   free rider problem.
C)   Tragedy of the Commons.
D)   Both a and c are correct.E) C) and D)
F) A) and B)

Question 7

The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity.

Accepted Answer

A) True 
 B)False

Question 8

The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of diet soft drinks is 0.0005.The cost of imposing a regulation that would ban the chemical is $18 million.If the value of a human life is equal to $10 million,how many people must the policy affect in order for the benefits to exceed the costs?

Accepted Answer

A)   301
B)   601
C)   1801
D)   3601E) None of the above
F) B) and D)

Exam 11: Public Goods and Common Resources

The U.S.government protects fish,a common resource,by

Correct Answer
verified

The degradation of the environment from litter is a

Correct Answer
verified

Correct Answer
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Without government intervention,public goods tend to be

Correct Answer
verified

Excessive fishing occurs because

Correct Answer
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Correct Answer
verified

The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity.

Correct Answer
verified

Goods that are rival in consumption and excludable would be considered

Correct Answer
verified

Exam 11: Public Goods and Common Resources

The U.S.government protects fish,a common resource,by

Correct AnswerverifiedShow Answer

The degradation of the environment from litter is a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Without government intervention,public goods tend to be

Correct AnswerverifiedShow Answer

Excessive fishing occurs because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity.

Correct AnswerverifiedShow Answer

Goods that are rival in consumption and excludable would be considered

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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