Question 1

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Accepted Answer

A)   $1 million.
B)   $5 million.
C)   $10 million.
D)   $20 million.E) None of the above
F) All of the above

Question 2

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

Accepted Answer

A)   assigning land property rights.
B)   auctioning off sheep-grazing permits.
C)   taxing sheep flocks.
D)   subsidizing sheep flocks.E) All of the above
F) C) and D)

Question 3

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) A) and B)
F) A) and C)

Question 4

Imagine a 2,000-acre park with picnic benches, trees, and a pond. Suppose it is publicly owned, and people are invited to enjoy its beauty. When the weather is nice, it is difficult to find parking, and the trash cans overflow with food wrappers on summer afternoons. Otherwise, it is a great place. The park is a common resource because

Accepted Answer

A)   people can be prevented from using it.
B)   access is limited due to driving distances.
C)   if too many people use it, one person's use diminishes other peoples' use.
D)   anyone can use it without affecting anyone else.E) None of the above
F) A) and B)

Question 5

The provision of public goods gives rise to

Accepted Answer

A)   no externalities.
B)   positive externalities.
C)   negative externalities.
D)   rivalries in consumption.E) None of the above
F) C) and D)

Question 6

In almost all cases of common resources, the same problem arises as in the Tragedy of the .

Accepted Answer

The answer of In almost all cases of common resources,...

Question 7

The national defense of the United States is not rival because

Accepted Answer

A)   my enjoyment of the national defense does not diminish your enjoyment of the national defense of the United States.
B)   my enjoyment of the national defense does diminish your enjoyment of the national defense of the United States.
C)   once the nation is defended, it is impossible to prevent any single person from enjoying the benefit of this defense.
D)   once the nation is defended, it is possible to prevent any single person from enjoying the benefit of this defense.E) A) and C)
F) A) and B)

Question 8

The Mansfield Public Library has a large number of books that anyone with a library card may borrow. Anyone can obtain a card for free. Because the number of copies of each book is limited, not everyone can have the same book at the same time. What type of good would the library books be classified as in this case?

Accepted Answer

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

Question 9

Are public goods excludable? Are they rival in consumption?

Accepted Answer

No, public goods are...

Question 10

Table 11-3
This table describes the police protection demands for three equal sized groups of people in Safetyville. The second, third, and fourth columns show the number of person-hours of police protection per day that a group will demand for a given price (the first column) .
 
-Refer to Table 11-3. If the marginal cost of police protection is constant at $36 per person-hour, what is the efficient level of police protection to provide?

Accepted Answer

A)   9 units
B)   39 units
C)   66 units
D)   99 unitsE) None of the above
F) A) and B)

Question 11

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)

Question 12

Pollution is a negative externality, but it is not appropriate to view the problem of pollution as a common-resource problem.

Accepted Answer

A) True 
 B)False

Question 13

One possible solution to the problem of protecting a common resource is to convert that resource to a private good.

Accepted Answer

A) True 
 B)False

Question 14

Excludability is the property of a good whereby

Accepted Answer

A)   one person's use diminishes other peoples' use.
B)   a person can be prevented from using it.
C)   the government rations the quantity of a good that is available.
D)   the resource is congestible.E) B) and C)
F) A) and D)

Question 15

The overuse of a common resource relative to its economically efficient use is called

Accepted Answer

A)   the free rider problem.
B)   the Tragedy of the Commons.
C)   a public good.
D)   cost-benefit analysis.E) B) and D)
F) A) and B)

Question 16

Which of the following is most likely to face extinction?

Accepted Answer

A)   dogs living as pets in households
B)   dairy cows living on farms and producing milk
C)   bald eagles living in zoos
D)   tigers living in the wildE) A) and B)
F) All of the above

Question 17

Each of the following would be considered a common resource except a

Accepted Answer

A)   water reservoir.
B)   streetlight.
C)   a congested road.
D)   book from a public library.E) B) and C)
F) C) and D)

Question 18

Highway engineers want to improve a dangerous stretch of highway. They expect that it will reduce the risk of someone dying in an accident from 5.3 percent to 2.1 percent over the life of the highway. If a human life is worth $10 million, then the project is worth doing as long as it does not cost more than

Accepted Answer

A)   $53,000.
B)   $210,000.
C)   $320,000.
D)   $2.1 million.E) All of the above
F) A) and D)

Question 19

Are common resources excludable? Are they rival in consumption?

Accepted Answer

No, common resources...

Question 20

A free rider is a person who pays for a good but does not receive the benefit of it.

Accepted Answer

A) True 
 B)False

Exam 11: Public Goods and Common Resources

Are common resources excludable? Are they rival in consumption?

Correct Answer
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No, common resources...
View Answer

The overuse of a common resource relative to its economically efficient use is called

Correct Answer
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Are public goods excludable? Are they rival in consumption?

Correct Answer
verified
No, public goods are...
View Answer

Correct Answer
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Correct Answer
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Excludability is the property of a good whereby

Correct Answer
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Each of the following would be considered a common resource except a

Correct Answer
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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 is an example of government intervention to solve a Tragedy of the Commons problem?

Correct Answer
verified

The provision of public goods gives rise to

Correct Answer
verified

One possible solution to the problem of protecting a common resource is to convert that resource to a private good.

Correct Answer
verified

In almost all cases of common resources, the same problem arises as in the Tragedy of the .

Correct Answer
verified

A free rider is a person who pays for a good but does not receive the benefit of it.

Correct Answer
verified

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Correct Answer
verified

Pollution is a negative externality, but it is not appropriate to view the problem of pollution as a common-resource problem.

Correct Answer
verified

Which of the following is most likely to face extinction?

Correct Answer
verified

Correct Answer
verified

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

Correct Answer
verified

The national defense of the United States is not rival because

Correct Answer
verified

Exam 11: Public Goods and Common Resources

Are common resources excludable? Are they rival in consumption?

Correct AnswerverifiedNo, common resources...View AnswerShow Answer

The overuse of a common resource relative to its economically efficient use is called

Correct AnswerverifiedShow Answer

Are public goods excludable? Are they rival in consumption?

Correct AnswerverifiedNo, public goods are...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Excludability is the property of a good whereby

Correct AnswerverifiedShow Answer

Each of the following would be considered a common resource except a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The provision of public goods gives rise to

Correct AnswerverifiedShow Answer

One possible solution to the problem of protecting a common resource is to convert that resource to a private good.

Correct AnswerverifiedShow Answer

In almost all cases of common resources, the same problem arises as in the Tragedy of the .

Correct AnswerverifiedShow Answer

A free rider is a person who pays for a good but does not receive the benefit of it.

Correct AnswerverifiedShow Answer

Studies that compare the wages of more risky and less risky occupations estimate the value of a human life to be about

Correct AnswerverifiedShow Answer

Pollution is a negative externality, but it is not appropriate to view the problem of pollution as a common-resource problem.

Correct AnswerverifiedShow Answer

Which of the following is most likely to face extinction?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

Correct AnswerverifiedShow Answer

The national defense of the United States is not rival because

Correct AnswerverifiedShow Answer

Correct Answer
verified
No, common resources...
View Answer

Correct Answer
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Correct Answer
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No, public goods are...
View Answer

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