chp 13 week 6

14. In order for a good to be classified as _____________________, when one person uses the good, others are also able to use it. A. nonrivalrous B. unrivalrous C. unexcludable D. nonexcludable

A

18. In the case of a positive externality the deadweight loss can be eliminated by A. subsidies and stronger patent / copyright laws B. one-quarter to one-third of social demand being taxed C. one-third to one-half of the total economic benefits being taxed D. one-quarter to one-third of the externality being ignored

A

4. Cathy can take either of two separate roads to drive to work. The first is a lightly used new toll road that is rarely congested. The second road is a local road with no tolls, but it is often congested and has many potholes. In this instance, the toll road is A. nonrivalrous and excludable B. rivalrous and nonexcludable C. nonrivalrous and nonexcludable D. rivalrous and excludable

A

5. There is a skating rink in your city that is free and open to anybody to use at any time. They even provide skates for people who don't own any. However there can be a long wait as many people want to skate here. This is an example of a good that is A. rivalrous and nonexcludable B. nonrivalrous and excludable C. rivalrous and excludable D. nonrivalrous and nonexcludable

A

16. If large numbers of individuals choose to behave as free riders, A. more of the public good will be available. B. the public good may never be provided. C. public goods will quickly be privatized. D. private goods become more difficult to obtain.

B

10. A positive externality in a market exists when a third party outside of the immediate buyer or seller A. Is rivalrous and gets upset B. Excludes her neighbors from enjoying the product C. Is affected in a beneficial way D. Is left out or excluded from any benefits

C

11. The Social demand curve in the case of a positive externality will include A. Private benefits only B. Benefits to society but not to individuals C. Private benefits as well as benefits to those outside of the transaction D. All that are left out or excluded from any benefits

C

13. The term "applied research" refers to research that is focused on a particular product that promises A. to offer commercial applications in the short-term. B. to offer commercial applications in the long-term. C. an economic payoff in the short or medium-term. D. an economic payoff in the medium or long-term

C

17. Some studies done by economists have found that the original inventor receives _____________________ from innovations, while other businesses and new product users receive the rest of the benefit. A. one-quarter to one-half of the social and economic benefits B. one-quarter to one-third of social and economic benefits C. one-third to one-half of the total economic benefits D. one-quarter to one-third of the total economic benefits

C

2. A private good is A. nonrivalrous and nonexcludable B. excludable and nonrivalrous C. excludable and rivalrous D. Nonexcludable and rivalrous

C

3. Which of the following would most likely be recognized as a defining characteristic of a public good? A. the good is nonrivalrous item B. the good is nonexcludable item C. the good is both a and b above D. the good is a separate and identifiable item

C

7. Eleanor Ostrom won the Nobel Prize in economics for her study of A. rivalrous and excludable private goods with well-defined property rights B. nonrivalrous and excludable radio frequency waves C. rivalrous and nonexcludable common-pool resources D. nonrivalrous and nonexcludable public goods

C

9. The beautiful Queen Conch, a marine mollusk found off the coast of Florida is quickly becoming threatened and potentially endangered since anyone with a little boat can go collect it. The Queen Conch is likely a A. rivalrous and excludable private goods with well-defined property rights B. nonrivalrous and excludable radio frequency waves C. rivalrous and nonexcludable common-pool resources D. nonrivalrous and nonexcludable public goods

C

1. African forest elephant population has declined by 86% over the last 30 years. Elephants are now a critically endangered species. With little regulation, anyone with a gun can go into the forests and even into wildlife preserves and kill elephants for their ivory. Soon, elephants may be thought of as mythical beings. Elephants are A. nonrivalrous and nonexcludable B. excludable and nonrivalrous C. excludable and rivalrous D. Nonexcludable and rivalrous

D

6. If the maintenance fees for a lighthouse are paid in full each year by charging port fees, then the lighthouse is A. rivalrous and excludable B. nonrivalrous and excludable C. rivalrous and nonexcludable D. nonrivalrous and nonexcludable

D

8. The fire-fighting services offered by public Fire Stations and Departments are A. rivalrous and excludable private goods with well-defined property rights B. nonrivalrous and excludable services C. rivalrous and nonexcludable common-pool resources D. nonrivalrous and nonexcludable public goods

D

12. The term "basic research" applies specifically to research pertaining to fundamental scientific breakthroughs that may offer commercial applications in the _____________________ . A. distant future B. near future C. immediate future D. short run

A

15. An individual who wants others to pay for public goods, but plans to use those goods for their own purposes without paying for them, is often referred to as a _____________________. A. tax evader B. excludable C. free rider D. nonexcludable

C