Question 1

The marginal social benefit is:

Accepted Answer

A)  the sum of the marginal benefit gained by each individual user.
B)  the benefit gained by the last user.
C)  the total benefit gained by the last user.
D)  the sum of the benefit gained by each individual user.E) None of the above
F) A) and B)

Question 2

Social disapproval is likely to be more effective:

Accepted Answer

A)  in a small town than a large city.
B)  in solving a free rider problem than a tragedy of the commons problem.
C)  than taxation.
D)  All of these statements are true.E) B) and C)
F) A) and B)

Question 3

A modern example of privatizing a common resource is:

Accepted Answer

A)  patents.
B)  quotas.
C)  taxes.
D)  subsidies.E) A) and D)
F) All of the above

Question 4

Nonexcludability causes:

Accepted Answer

A)  people to demand a higher quantity than they would if they had to pay for what they consumed.
B)  people to demand a lower quantity than they would if they paid for what they consumed.
C)  firms to supply a lower quantity than they would if they incurred the full costs of the provision of the good.
D)  firms to supply a higher quantity than they would if they had to pay for what they supplied.E) A) and B)
F) All of the above

Question 5

Which of the following is likely to cause market failure and be undersupplied?

Accepted Answer

A)  Research
B)  Orange juice
C)  River water
D)  Grazing pastureE) A) and B)
F) A) and C)

Question 6

Bans or quotas that limit the use of common resources are straightforward public-policy approaches to solving the problem of overuse if:

Accepted Answer

A)  countries have the resources to enforce them.
B)  the community agrees to aid in its enforcement.
C)  the community affected participates in setting the punishments for breaking the policy.
D)  None of these statements is true.E) All of the above
F) A) and B)

Question 7

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

Accepted Answer

A)  figuring out who owns what when many are using the resource.
B)  deciding which individuals will have to decrease their consumption.
C)  compounded the more users there are.
D)  All of these statements are true.E) None of the above
F) A) and C)

Question 8

Using a common resource:

Accepted Answer

A)  creates a positive externality for others.
B)  maximizes total surplus.
C)  is an irrational decision.
D)  imposes a negative externality on others.E) C) and D)
F) A) and D)

Question 9

An artificially scarce good is:

Accepted Answer

A)  rival in consumption and excludable.
B)  not rival in consumption,but excludable.
C)  rival in consumption,but not excludable.
D)  not rival in consumption and not excludable.E) A) and B)
F) B) and C)

Question 10

When the free rider problem is present in a market:

Accepted Answer

A)  the good will be oversupplied.
B)  the good will be underconsumed.
C)  the good is rival in consumption.
D)  the good is not excludable.E) All of the above
F) A) and D)

Exam 19: Public Goods and Common Resources

Social disapproval is likely to be more effective:

Correct Answer
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When the free rider problem is present in a market:

Correct Answer
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Which of the following is likely to cause market failure and be undersupplied?

Correct Answer
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A modern example of privatizing a common resource is:

Correct Answer
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Nonexcludability causes:

Correct Answer
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Bans or quotas that limit the use of common resources are straightforward public-policy approaches to solving the problem of overuse if:

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

Correct Answer
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An artificially scarce good is:

Correct Answer
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Using a common resource:

Correct Answer
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The marginal social benefit is:

Correct Answer
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Exam 19: Public Goods and Common Resources

Social disapproval is likely to be more effective:

Correct AnswerverifiedShow Answer

When the free rider problem is present in a market:

Correct AnswerverifiedShow Answer

Which of the following is likely to cause market failure and be undersupplied?

Correct AnswerverifiedShow Answer

A modern example of privatizing a common resource is:

Correct AnswerverifiedShow Answer

Nonexcludability causes:

Correct AnswerverifiedShow Answer

Bans or quotas that limit the use of common resources are straightforward public-policy approaches to solving the problem of overuse if:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An artificially scarce good is:

Correct AnswerverifiedShow Answer

Using a common resource:

Correct AnswerverifiedShow Answer

The marginal social benefit is:

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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Correct Answer
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Correct Answer
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