Question 1

When choosing the right amount of a public good to supply, the government often:

Accepted Answer

A)  guesses, because people have an incentive to overstate a good's value.
B)  provides too much, because people have an incentive to understate a good's value.
C)  provides too little, because people have an incentive to overstate a good's value.
D)  fails to provide it, because people have an incentive to understate a good's value.

Question 2

When we consider solving a free rider problem by changing social norms, it is helpful to remember that:

Accepted Answer

A)  all costs aren't financial.
B)  social disapproval can be considered a cost.
C)  conflict with those in your community can be considered a cost.
D)  All of these are true.

Question 3

In many areas, local governments only allow individuals with hunting permits to hunt. This regulation is likely in place because without it: the tragedy of the commons would exist. the hunted animals are nonexcludable goods. the hunted animals are rival goods.

Accepted Answer

A)  II only
B)  I and II only
C)  II and III only
D)  I, II, and III

Question 4

A chocolate chip cookie would be considered:

Accepted Answer

A)  a common resource.
B)  a private good.
C)  a public good.
D)  an artificially scarce good.

Question 5

Which type of good is rival in consumption, but not excludable?

Accepted Answer

A)  Common resource
B)  Private
C)  Public
D)  Artificially scarce

Question 6

Without correction, the quantity of a public good that is exchanged will occur where:

Accepted Answer

A)  the marginal social benefit of additional consumption exceeds the marginal social cost of additional production.
B)  the marginal social benefit is equal to the marginal social cost.
C)  the marginal social benefit of additional consumption is less than the marginal social cost of additional production.
D)  the marginal social cost is zero.

Question 7

One of the difficulties the government faces when privatizing a common resource is:

Accepted Answer

A)  figuring out who owns what, when many people are using the resource.
B)  deciding which individuals will have to decrease their consumption.
C)  that the more users there are, the harder it is to accomplish.
D)  All of these are true.

Question 8

Which of the following statements describes a similarity between markets for common resources and markets with externalities?

Accepted Answer

A)  The equilibrium quantity is too high.
B)  The price that competitive firms charge does not capture the true costs and benefits of consumption.
C)  Government involvement is needed in order to reach an efficient outcome.
D)  Generally, the good or service is oversupplied in the market.

Question 9

A common resource is:

Accepted Answer

A)  rival in consumption and excludable.
B)  excludable, but not rival in consumption.
C)  rival in consumption, but not excludable.
D)  neither rival in consumption nor excludable.

Question 10

A smartphone would be considered:

Accepted Answer

A)  a common resource.
B)  a private good.
C)  a public good.
D)  an artificially scarce good.

Question 11

If the government is supplying a public good, the efficient quantity occurs where the:

Accepted Answer

A)  total social benefit equals the cost.
B)  marginal social benefit is greater than the cost.
C)  marginal social benefit equals the cost.
D)  total social benefit outweighs the total cost.

Question 12

One way the government decides how to pay for public goods is by:

Accepted Answer

A)  identifying how easy it is to exclude people who don't pay.
B)  determining who uses the good the most and increasing their property taxes.
C)  comparing individuals' marginal benefits.
D)  polling the public about the most appropriate funding measures.

Exam 19: Public Goods and Common Resources

If the government is supplying a public good, the efficient quantity occurs where the:

Correct Answer
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A smartphone would be considered:

Correct Answer
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Which of the following statements describes a similarity between markets for common resources and markets with externalities?

Correct Answer
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A chocolate chip cookie would be considered:

Correct Answer
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Without correction, the quantity of a public good that is exchanged will occur where:

Correct Answer
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One way the government decides how to pay for public goods is by:

Correct Answer
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One of the difficulties the government faces when privatizing a common resource is:

Correct Answer
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Which type of good is rival in consumption, but not excludable?

Correct Answer
verified

When we consider solving a free rider problem by changing social norms, it is helpful to remember that:

Correct Answer
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A common resource is:

Correct Answer
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In many areas, local governments only allow individuals with hunting permits to hunt. This regulation is likely in place because without it: the tragedy of the commons would exist. the hunted animals are nonexcludable goods. the hunted animals are rival goods.

Correct Answer
verified

When choosing the right amount of a public good to supply, the government often:

Correct Answer
verified

Exam 19: Public Goods and Common Resources

If the government is supplying a public good, the efficient quantity occurs where the:

Correct AnswerverifiedShow Answer

A smartphone would be considered:

Correct AnswerverifiedShow Answer

Which of the following statements describes a similarity between markets for common resources and markets with externalities?

Correct AnswerverifiedShow Answer

A chocolate chip cookie would be considered:

Correct AnswerverifiedShow Answer

Without correction, the quantity of a public good that is exchanged will occur where:

Correct AnswerverifiedShow Answer

One way the government decides how to pay for public goods is by:

Correct AnswerverifiedShow Answer

One of the difficulties the government faces when privatizing a common resource is:

Correct AnswerverifiedShow Answer

Which type of good is rival in consumption, but not excludable?

Correct AnswerverifiedShow Answer

When we consider solving a free rider problem by changing social norms, it is helpful to remember that:

Correct AnswerverifiedShow Answer

A common resource is:

Correct AnswerverifiedShow Answer

In many areas, local governments only allow individuals with hunting permits to hunt. This regulation is likely in place because without it: the tragedy of the commons would exist. the hunted animals are nonexcludable goods. the hunted animals are rival goods.

Correct AnswerverifiedShow Answer

When choosing the right amount of a public good to supply, the government often:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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