Question 1

Which of the following statements is correct?

Accepted Answer

A)  Common resources are nonexcludable and nonrival in consumption.
B)  Uncongested toll roads are an example of the free rider problem.
C)  When African elephants were privatized,the survival of the species improved.
D)  Fish in the ocean are excludable but nonrival in consumption.E) A) and C)
F) None of the above

Question 2

Advocates of antipoverty programs claim that fighting poverty

Accepted Answer

A)  is best accomplished by charities.
B)  is a public good.
C)  is more efficiently accomplished by the market.
D)  should not be attempted with tax dollars.E) A) and C)
F) A) and B)

Question 3

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

Accepted Answer

A)  fiscal analysis.
B)  monetary analysis.
C)  welfare analysis.
D)  cost-benefit analysis.E) A) and D)
F) B) and C)

Question 4

In deciding whether a good is a public good,one must determine the

Accepted Answer

A)  incomes of those who benefit from the good.
B)  value of the external benefits that accrue to resource owners.
C)  excludability of the good.
D)  All of the above are correct.E) None of the above
F) All of the above

Question 5

Which of the following is a disadvantage of government provision of a public good such as national defense?
(i) The government does not know the exact willingness of consumers to pay for the public good.
(ii) The free-rider problem is more likely to occur when the government provides a public good than when the private sector provides a public good.
(iii) Taxpayers do not agree on the optimal quantity of the public good that the government should provide.

Accepted Answer

A)  (i) only
B)  (i) and (ii) only
C)  (i) and (iii) only
D)  (i) ,(ii) ,and (iii) E) B) and D)
F) B) and C)

Question 6

Markets may fail to allocate resources efficiently when property rights are not well established.

Accepted Answer

A) True 
 B)False

Question 7

Because elephants roam freely in many countries in Africa,each individual African elephant poacher has

Accepted Answer

A)  a strong incentive to kill as many elephants as he can find.
B)  a strong incentive to protect the elephants.
C)  the ability to save the elephants.
D)  None of the above is correct.E) A) and B)
F) A) and C)

Question 8

The provision of a public good generates a

Accepted Answer

A)  positive externality,as does the use of a common resource.
B)  positive externality and the use of a common resource generates a negative externality.
C)  negative externality,as does the use of a common resource.
D)  negative externality and the use of a common resource generates a positive externality.E) A) and C)
F) None of the above

Question 9

Figure 11-1 
-Refer to Figure 11-1.The box labeled A represents

Accepted Answer

A)  private goods.
B)  club goods.
C)  common resources.
D)  public goods.E) None of the above
F) All of the above

Question 10

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Accepted Answer

A)  subsidizing basic research
B)  building lighthouses
C)  toll charges on congested roads
D)  cost-benefit analysisE) C) and D)
F) A) and C)

Exam 11: Public Goods and Common Resources

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Correct Answer
verified

The provision of a public good generates a

Correct Answer
verified

In deciding whether a good is a public good,one must determine the

Correct Answer
verified

Advocates of antipoverty programs claim that fighting poverty

Correct Answer
verified

Markets may fail to allocate resources efficiently when property rights are not well established.

Correct Answer
verified

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Figure 11-1 -Refer to Figure 11-1.The box labeled A represents

Correct Answer
verified

Because elephants roam freely in many countries in Africa,each individual African elephant poacher has

Correct Answer
verified

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

Correct AnswerverifiedShow Answer

The provision of a public good generates a

Correct AnswerverifiedShow Answer

In deciding whether a good is a public good,one must determine the

Correct AnswerverifiedShow Answer

Advocates of antipoverty programs claim that fighting poverty

Correct AnswerverifiedShow Answer

Markets may fail to allocate resources efficiently when property rights are not well established.

Correct AnswerverifiedShow Answer

If the government decides to build a new highway,the first step would be to conduct a study to determine the value of the project.The study is called a

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.The box labeled A represents

Correct AnswerverifiedShow Answer

Because elephants roam freely in many countries in Africa,each individual African elephant poacher has

Correct AnswerverifiedShow Answer

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