econ, chapter 19 - public goods and tragety of the commons
Club goods are likely to have ________ fixed costs and ________ marginal costs.
large; small
Both public goods and common resources are:
nonexcludable.
People have little incentive to produce a public good because:
of the free rider problem
The tragedy of the commons refers to the:
overuse of a rival but nonexcludable good
A forced rider is someone who:
pays a share of the costs of a public good but does not enjoy the benefits
Which of the following is a list of common resources ONLY?
public beach, soup kitchen meals, public roads
A free rider is a person who:
receives the benefit of a good but avoids paying for it
A tragedy of the commons often results from ______ and ______
rivalry; nonexcludability
An example of a common resource is:
the environment.
Compared to private goods, the free market would ________ public goods.
underproduce
In which case below is there the potential for a free-rider problem?
voluntary payments for a smog reduction program
Which of the following solutions allows for an efficient allocation of a public good?
advertising
A person ________ be cheaply prevented from using national defense, a(n) ________ good
cannot; non excludable
Solving a tragedy of the commons problem could be done through:
establishment of property rights over the common resource, government-armed protection.
Private goods can be provided by competitive markets because they are:
excludable, providing an incentive to pay for and thus to produce these goods
The tragedy of commons is more likely to apply to:
forests, fish, and elephants.