Question 1

Goods that are rival in consumption,but not excludable are:

Accepted Answer

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

Question 2

An example of a public good is:

Accepted Answer

A)  national defense.
B)  libraries.
C)  timber.
D)  All of these are public goods.

Question 3

Which of the following goods is most likely to be overconsumed?

Accepted Answer

A)  Fish in the ocean
B)  Fish in a pet store
C)  Fish in the grocery store
D)  None of these is likely to be overconsumed.

Question 4

In a market where the tragedy of the commons arises,the equilibrium quantity is both individually ____________ and collectively __________.

Accepted Answer

A)  rational;inefficient
B)  inefficient;rational
C)  irrational;efficient
D)  efficient;irrational

Question 5

The depletion of a common resource due to individually rational but collectively inefficient overconsumption is called:

Accepted Answer

A)  the tragedy of the commons.
B)  the free rider problem.
C)  rival in consumption.
D)  excludability.

Question 6

When a good is rival in consumption:

Accepted Answer

A)  one person's consumption prevents or decreases others' ability to consume it.
B)  it is possible for sellers to prevent its use by those who have not paid for it.
C)  consumers have a perception of scarcity of that good.
D)  the government has specific import policies limiting its supply.

Question 7

An example of a good that is rival in consumption is:

Accepted Answer

A)  a sports car.
B)  a paper clip.
C)  bottled water.
D)  All of these goods are rival in consumption.

Question 8

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

Accepted Answer

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

Question 9

Social disapproval carries a higher cost in places where you:

Accepted Answer

A)  know the people around you.
B)  care about the opinions of people around you.
C)  expect to interact with the people around you again in the future.
D)  All of these statements are true.

Question 10

Free riders enjoy:

Accepted Answer

A)  positive externalities from others' choices to pay for a good.
B)  negative externalities from others' choices to pay for a good.
C)  positive externalities transferred from consumers who receive subsidies.
D)  positive externalities from a good they choose to buy themselves.

Question 11

In order to eliminate a free rider problem or tragedy of the commons problem:

Accepted Answer

A)  the social costs must be realized by the individual.
B)  something must be done to alter individuals' trade-offs.
C)  market participants must internalize the value of the externality.
D)  All of these statements are true.

Question 12

When the optimal quantity of consumption is zero for a given good:

Accepted Answer

A)  a ban is often the best solution.
B)  changing social norms is often the best solution.
C)  privatizing the good is often the best solution.
D)  government provision of the good is often the best solution.

Question 13

When a good is not excludable and rival in consumption:

Accepted Answer

A)  the free rider problem may arise.
B)  the tragedy of the commons may arise.
C)  the good is likely a private good.
D)  the good is likely a common resource.

Question 14

When government tries to change social norms,they:

Accepted Answer

A)  might run an extensive ad campaign.
B)  are trying to change people's opinions about their actions.
C)  try to get consumers to internalize the cost or benefit they cause by their market decision.
D)  All of these statements are true.

Question 15

An example of a good that is rival in consumption is:

Accepted Answer

A)  a sweater.
B)  bottled water.
C)  tap water.
D)  All of these goods are rival in consumption.

Question 16

The costs involved with breaking a ban placed on a good:

Accepted Answer

A)  depend on the punishment associated with rule breaking.
B)  depend on the likelihood of being caught.
C)  depend on the likelihood of being punished if caught.
D)  All of these can affect costs involved with breaking a ban placed on a good.

Question 17

Bans are applied to:

Accepted Answer

A)  common-resource problems.
B)  reduce the inefficiency created by overuse.
C)  situations where the optimal quantity of consumption is zero.
D)  All of these statements are true.

Question 18

If the marginal benefit were greater than the cost of a good:

Accepted Answer

A)  consumers could increase their utility by buying more.
B)  consumers could increase their utility by buying less.
C)  producers should decrease production.
D)  None of these is true.

Question 19

Goods that are not rival in consumption,but are excludable are:

Accepted Answer

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

Question 20

When a good ends up undersupplied,we can assume it is:

Accepted Answer

A)  a common resource.
B)  a private good.
C)  a public good.
D)  None of these goods can be undersupplied.

Exam 19: Public Goods and Common Resources

When the optimal quantity of consumption is zero for a given good:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The costs involved with breaking a ban placed on a good:

Correct AnswerverifiedShow Answer

When a good ends up undersupplied,we can assume it is:

Correct AnswerverifiedShow Answer

Social disapproval carries a higher cost in places where you:

Correct AnswerverifiedShow Answer

If the marginal benefit were greater than the cost of a good:

Correct AnswerverifiedShow Answer

When government tries to change social norms,they:

Correct AnswerverifiedShow Answer

When a good is rival in consumption:

Correct AnswerverifiedShow Answer

The depletion of a common resource due to individually rational but collectively inefficient overconsumption is called:

Correct AnswerverifiedShow Answer

When a good is not excludable and rival in consumption:

Correct AnswerverifiedShow Answer

Goods that are not rival in consumption,but are excludable are:

Correct AnswerverifiedShow Answer

In a market where the tragedy of the commons arises,the equilibrium quantity is both individually ____________ and collectively __________.

Correct AnswerverifiedShow Answer

In order to eliminate a free rider problem or tragedy of the commons problem:

Correct AnswerverifiedShow Answer

Which of the following goods is most likely to be overconsumed?

Correct AnswerverifiedShow Answer

Goods that are rival in consumption,but not excludable are:

Correct AnswerverifiedShow Answer

Free riders enjoy:

Correct AnswerverifiedShow Answer

An example of a good that is rival in consumption is:

Correct AnswerverifiedShow Answer

An example of a good that is rival in consumption is:

Correct AnswerverifiedShow Answer

Bans are applied to:

Correct AnswerverifiedShow Answer

An example of a public good is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In a market where the tragedy of the commons arises,the equilibrium quantity is both individually __ and collectively .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified