CH 11.

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table above shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $500 and the four families have agreed to split the equipment costs equally. If the families vote to determine how many pieces of equipment to buy, basing their decision solely on their willingness to pay (and trying to maximize their own surplus), what is the largest number of pieces of equipment for which at least 3 families would vote "yes"? a.4 b.2 c.3 d.1

3

A good is excludable if one person's use diminishes other peoples' use. True False

False

A good is rival in consumption if people can be prevented from using it. True False

False

Installation of a sufficient number of bat houses in a neighborhood can help control the mosquito population and, therefore, reduce the transmission of serious illnesses carried by mosquitoes. We should expect that neighbors will install an efficient number of bat houses. True False

False

The free-rider problem occurs whenever a good is not rival in consumption. True False

False

The use of a common resource generates a positive externality. True False

False

A good is excludable if people can be prevented from using it. True False

True

A good is rival in consumption if one person's use diminishes other peoples' use. True False

True

An uncongested toll bridge is an example of a club good. True False

True

The provision of a public good generates a positive externality True False

True

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table above shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $800 and the four families have agreed to split the equipment costs equally. If the families decide to buy the number of pieces of equipment that maximizes total surplus from the park, how much total surplus will the Zed family receive? a.$250 b.$950 c.-$50 d.$50

a.$250

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table above shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $1000. How many pieces of playground equipment should be bought to maximize the total surplus of the four families? a.3 b.4 c.1 d.2

a.3

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table above shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $500 and the four families have agreed to split the equipment costs equally. If the families vote to determine how many pieces of equipment to buy, basing their decision solely on their willingness to pay (and trying to maximize their own surplus), what is the largest number of pieces of equipment for which at least 3 families would vote "yes"? a.3 b.4 c.2 d.1

a.3

If cow horn became acceptable as a substitute for elephant ivory, which of the following would NOT be true? a.Cows would become as threatened with extinction as elephants b.Elephants would become less threatened with extinction c.Wild cows would be hunted d.Cows would become more valuable

a.Cows would become as threatened with extinction as elephants

Suppose that a city is trying to reduce commute-time congestion in its downtown by changing the pricing structure at the parking garages it owns. If it currently charges the same amount per hour, which of the following pricing changes would be effective in reducing congestion? a.Decreasing parking rates for those who arrive and leave earlier than congested times and increasing them for those who arrive and leave during congested times. b.Increasing the hourly parking rate c.Selling a daily parking pass d.Selling an annual parking pass

a.Decreasing parking rates for those who arrive and leave earlier than congested times and increasing them for those who arrive and leave during congested times.

A community soccer field that anyone can currently use at any time has become degraded from overuse. Which of the following solutions would be an example of the community solving the problem by assigning property rights to a common resource? a.Leasing the soccer field on a long-term basis to a youth soccer association, which could set use for the field and would be responsible for maintenance. b.Charging a fee for use of the soccer field, and letting the fee restrict how much it was used. c.Requiring that games be held only every second day d.Posting signs requesting that the field not be used in the rain

a.Leasing the soccer field on a long-term basis to a youth soccer association, which could set use for the field and would be responsible for maintenance.

Which of the following would most likely endanger cow populations? a.Not allowing cows to be owned b.Overbreeding c.If cow horn were found to be a good substitute for ivory d.Increased demand for beef

a.Not allowing cows to be owned

A community soccer field that anyone can currently use at any time has become degraded from overuse. Which of the following solutions would be an example of the community solving the problem by regulating the quantity of use as opposed to taxation or assigning property rights to the resource? a.Requiring that games be held only every second day b.Leasing the soccer field on a long-term basis to a youth soccer association, which would set the schedule, charge fees for use, and be responsible for maintenance. c.Charging a fee for use of the soccer field d.Posting signs requesting that the field not be used in the rain

a.Requiring that games be held only every second day

Pigs are not endangered while rhinoceros are primarily because a.Rhinoceros are not excludable while pigs are excludable b.Pigs are not as valuable as rhinoceros c.Pigs are cute while rhinoceros are not d.Rhinoceros are not rival in consumption, while pigs are rival in consumption

a.Rhinoceros are not excludable while pigs are excludable

Which of the following statements is true of a tax on gasoline in reference to congestion? a.There are better ways to decrease congestion b.It would more effective against congestion if it were lower c.The increased use of electric vehicles will make a gasoline tax more effective in reducing congestion d.Economists recommend it over tolls

a.There are better ways to decrease congestion

Which of the following is an example of the Tragedy of the Commons? a.Unrestricted, unmetered street parking in a city where it is difficult to find a parking spot b.Parking in a privately-owned parking lot c.Metered street parking in a city where it is easy to find a parking spot. d.Metered street parking in a city where it is difficult to find a parking spot.

a.Unrestricted, unmetered street parking in a city where it is difficult to find a parking spot

Students in a library express preference for a quiet student environment, but the library often ends up being noisy due to conversations. To an economist, a quiet library represents a.a common resource problem b.a club good c.a public good d.a private good

a.a common resource problem

If a good is rival in consumption, it could be a.a private good or a common resource b.a common resource or a public good c.a private good or a club good d.a club good or a public good

a.a private good or a common resource

Suppose the cost to set up a tsunami warning system in a small beach town is $240,000. In addition, suppose that the value of a human life is $12 million. By what percentage would the warning system need to reduce the risk of a fatality for the benefits of the warning system to exceed the costs of the warning system? a.by at least 2 percentage points b.by at least 20 percentage points c.by at least 0.02 percentage points d.by at least 0.2 percentage points

a.by at least 2 percentage points

Both public goods and common resources are a.not excludable, but only public goods are not rival in consumption b.excludable, but only public goods are not rival in consumption c.not excludable, but only common resources are not rival in consumption d.excludable, but only common resources are not rival in consumption

a.not excludable, but only public goods are not rival in consumption

A lighthouse is usually classified as a public good because a.passing ships cannot be excluded from receiving the benefits of the lighthouse b.they provide a benefit to society c.they are usually located on government-owned land d.they are usually operated by a government agency

a.passing ships cannot be excluded from receiving the benefits of the lighthouse

A meadow that is so lightly used that it regenerates after every use in a national park for which there is no entry fee would be an example of a a.public good b.private good c.common resource d.club good

a.public good

Which of the following goods is the best example of a public good? a.television that is broadcast over the airwaves by privately-owned TV station b.a privately-owned toll highway whose rates are regulated by the state c.electricity that is provided to homes by a municipally-owned utility d.water that is provided to farms by a cooperatively-owned water district

a.television that is broadcast over the airwaves by privately-owned TV station

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table above shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $800 and the four families have agreed to split the equipment costs equally. If the families decide to buy the number of pieces of equipment that maximizes total surplus from the park, how much total surplus will the Yollo family receive? a.$200 b.$950 c.-$200 d.$0

b.$950

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table above shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $450. How many pieces of playground equipment should be bought to maximize the total surplus of the four families? a.3 b.4 c.1 d.2

b.4

Where there is a tragedy of the commons, users of the common resource cause for each other a.A free rider problem b.A negative externality c.A surplus d.An efficient market

b.A negative externality

Which of the following is NOT a result of individual fishermen having too little incentive to maintain the species for the next year? a.Overfishing b.Any commercially valuable wild species in the ocean is guaranteed to eventually become extinct c.Fishing generates a negative externality d.The oceans are an example of the tragedy of the commons

b.Any commercially valuable wild species in the ocean is guaranteed to eventually become extinct

If good A is a common resource and good B is a public good, private decisions about the consumption of good A and the production of good B will lead to a.Efficient allocation of both good A and good B b.Inefficient allocation of both good A and good B c.Inefficient allocation of good A but efficient allocation of good B d.Efficient allocation of good A but inefficient allocation of good B

b.Inefficient allocation of both good A and good B

Suppose there is a state where hunting licenses are free and unlimited. Which of the following is true? a.The licenses will have no effect on the use of the resource. b.The licenses may still reduce overuse of a resource through the cost of the time required to obtain them. c.They are an example of resolving a common resource problem by assigning a property right in the resource. d.The licenses are an example of resolving a common resource problem with a tax

b.The licenses may still reduce overuse of a resource through the cost of the time required to obtain them.

The state government is considering a highway widening project to save travel time. Which of the following components of the cost benefit analysis would be most difficult to determine? a.The cost of the engineering work required for the project. b.The value of the decreased travel time generated by the project. c.The cost of the equipment needed for project d.The wages of the workers required for the project

b.The value of the decreased travel time generated by the project.

All of the following are true about variable tolls on roads except a.Variable tolls are politically unpopular b.Variable tolls are no more effective than non-variable tolls at easing congestion c.Variable tolls are an effective way of correcting the common resource problem on roads d.Variable tolls rise when traffic volume increases

b.Variable tolls are no more effective than non-variable tolls at easing congestion

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $1700 and the four families have agreed to split the equipment costs equally. Which families would be in favor of buying at least 1 piece of equipment? a.only Washington, Xavier, and Yollo b.Washington, Xavier, Yollo, and Zed c.only Xavier d.only Xavier and Yollo

b.Washington, Xavier, Yollo, and Zed

When a company is granted a patent by the U.S. government, a.a piece of general knowledge becomes rival in consumption b.a piece of specific, technical knowledge becomes excludable c.a piece of specific, technical knowledge becomes rival in consumption d.a piece of general knowledge becomes excludable

b.a piece of specific, technical knowledge becomes excludable

Private goods and club goods are similar because they are both ____________, but they are different because ____________________. a.excludable; club goods are rival and private goods are not b.excludable; private goods are rival and club goods are not c.rival; private goods are excludable and club goods are not d.rival; club goods are excludable and private goods are not

b.excludable; private goods are rival and club goods are not

National defense is often used as an example of a public good because it a.has such strong support from the public b.is difficult to exclude people from receiving the benefits from national defense once it is provided. c.has always been provided by the government d.is so clearly in the public interest

b.is difficult to exclude people from receiving the benefits from national defense once it is provided.

A large, lightly-used pool at a private resort is an example of a a.private good b.nonrival but excludable good c.rival but nonexcludable good d.public good

b.nonrival but excludable good

The San Francisco Bay Bridge has a toll in the westbound direction. Despite the toll, the bridge experiences congestion during morning and evening commute times. What type of good would the westbound direction of the bridge be classified in this case? a.public good b.private good c.common resource d.club good

b.private good

Most goods in the economy are a.public goods. b.private goods. c.common resources. d.club goods.

b.private goods.

In economics, a free rider refers to a person who a.a snowboarder who enjoys jumping off cliffs b.receives the benefit of a good but avoids paying for it. c.takes advantage of free samples d.is legally entitled to free passes on public transportation

b.receives the benefit of a good but avoids paying for it.

An internet access point without a password that has become slow from overuse is an example of a a.nonrival but excludable good b.rival but nonexcludable good c.private good d.public good

b.rival but nonexcludable good

If surveys about the value of a public project could be conducted in such a way that they produced more honest answers, the resulting estimate of the benefits to those who would benefit from the project a.would be higher than from previous surveys, and the cost to those who would be harmed by the project would be lower. b.would be lower than from previous surveys, and the cost to those who would be harmed by the project would also be lower. c.would be higher than from previous surveys, and the cost to those who would be harmed by the project would also be higher. d.would be lower than from previous surveys, and the cost to those who would be harmed by the project would be higher.

b.would be lower than from previous surveys, and the cost to those who would be harmed by the project would also be lower.

The statement that "externalities occur because something valuable is unpriced" is true for a.public goods, but not for common resources b.Neither public goods nor common resources c.Both public goods and common resources d.common resources, but not public goods.

c.Both public goods and common resources

A community soccer field that anyone can currently use at any time has become degraded from overuse. Which of the following solutions would be an example of the community solving the problem by taxing the use of a common resource? a.Requiring that games be held only every second day b.Leasing the soccer field on a long-term basis to a youth soccer association, which could set use for the field and would be responsible for maintenance. c.Charging a fee for use of the soccer field, and letting the fee restrict how much it was used. d.Posting signs requesting that the field not be used in the rain

c.Charging a fee for use of the soccer field, and letting the fee restrict how much it was used.

Suppose that the government has found that a resource that is nonexcludable but rival in consumption is being overused. Which of the following represents all of the solutions that the government could likely use to successfully reduce the overuse of this resource? a.Taxing the use of the resource b.Taxing or setting quantity restrictions on the use of the resource c.Taxing or setting quantity restrictions on the use of the resource or selling the resource to a private entity d.Taxing, setting quantity restrictions on, and encouraging voluntary reductions in the use of the resource

c.Taxing or setting quantity restrictions on the use of the resource or selling the resource to a private entity

If a company released the patents on some of its inventions, allowing anyone to use them without charge, the patented knowledge would go from being a.a common resource to a private good b.a private good to a club good c.a club good to a public good d.a public good to a common resource

c.a club good to a public good

When a company is granted a patent by the U.S. government, a.a piece of specific, technical knowledge becomes rival in consumption b.a piece of general knowledge becomes rival in consumption c.a piece of specific, technical knowledge becomes excludable d.a piece of general knowledge becomes excludable

c.a piece of specific, technical knowledge becomes excludable

If a good is excludable, it could be a.a private good or a common resource b.a common resource or a public good c.a private good or a club good d.a club good or a public good

c.a private good or a club good

If a good is rival in consumption, it could be a.a common resource or a public good b.a private good or a club good c.a private good or a common resource d.a club good or a public good

c.a private good or a common resource

A community soccer field that anyone can use without charge but for which teams have to wait their turn to use would be an example of a a.community good b.club good c.common resource d.public good

c.common resource

A meadow that is being damaged by overuse in a national park for which there is no entry fee would be an example of a a.public good b.private good c.common resource d.club good

c.common resource

The San Francisco Bay Bridge has a toll in the westbound direction but not in the eastbound direction, so any driver can travel in the eastbound direction free of charge. The bridge is congested in both directions during morning and evening commute times. What type of good would the eastbound direction of the bridge be classified in this case? a.public good b.private good c.common resource d.club good

c.common resource

When the value of a human life is required in a cost-benefit analysis, economists recommend calculating it based on a.the projected future earnings of those impacted by the project b.the number of dependents a person has c.differences in mortality risk and earnings among jobs. d.the recognition that the value of human life cannot be calculated

c.differences in mortality risk and earnings among jobs.

Advocates of antipoverty programs believe that fighting poverty a.is worthwhile despite the loss of efficiency b.should be addressed more by charities than by the government c.is an example of the free-rider problem d.is best addressed by the market

c.is an example of the free-rider problem

A large number of people benefit from good X, and excluding an individual from those benefits is impractical. Good X will a.be profitable for private firms b.be produced in certain seasons c.likely suffer from the free-rider problem d.be very expensive

c.likely suffer from the free-rider problem

The free-rider problem causes market failure because a.it makes goods rival in consumption. b.goods are priced too low c.people can receive a benefit without paying for it d.firms end up pricing goods too high in order to make up for losses due to free riders.

c.people can receive a benefit without paying for it

Free riding is least likely to occur with which type of good? a.common resources b.public goods c.private goods d.club goods

c.private goods

A few friends get together for lunch every week. The current practice is that each person eats and pays only for what they order. In an attempt to taste a wider variety of food, the friends are considering a system where each person orders an item that will be shared with everyone. The bill will be split evenly among the friends.A Tragedy of the commons will most likely occur a.under the current system where people pay just for what they order b.equally under both system c.under the proposed system where the food and bill is shared d.In neither system

c.under the proposed system where the food and bill is shared

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table above shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $800 and the four families have agreed to split the equipment costs equally. If the families decide to buy the number of pieces of equipment that maximizes total surplus from the park, how much total surplus will the Zed family receive? a.$950 b.$1550 c.$0 d.$250

d.$250

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $1200 and the four families have agreed to split the equipment costs equally. How many pieces of playground equipment would the Washington family prefer to buy? a.2 b.3 c.0 d.1

d.1

According to an economist, who among the following is a free rider? a.Carl skies for free at a ski resort because he won a lifetime pass in a raffle. b.Dennis rides his mountain bike on trails with jumps and obstacles. c.Abigail takes free samples at the grocery store without intending to buy the product being sampled. d.Beatrice enjoys the efforts of a local charity but has never made a contribution to it, despite frequent solicitations.

d.Beatrice enjoys the efforts of a local charity but has never made a contribution to it, despite frequent solicitations.

The Tragedy of the Commons a.Is only applicable to land owned in common, which is rare. b.Is an example of a positive externality c.Occurs most often with club goods d.Can be eliminated by taxing use of a common resource.

d.Can be eliminated by taxing use of a common resource.

The administrators of a library that provides free internet that becomes very slow during popular times but is fine otherwise are considering various policies to speed up the network. Which of the following policies is likely to be most effective at improving speeds? a.Charging $1 per hour for use of internet at all times that the library is open b.Encouraging people not to use network-intensive applications during popular times. c.Charging $10 for a day pass d.Charging $2 per hour during popular times and no charge at other times.

d.Charging $2 per hour during popular times and no charge at other times.

Which of the following is NOT true about a driver who drives onto a congested bridge for which no toll is charged? a.The driver is slowing other drivers down b.The driver helps create a negative-externality problem c.The driver contributes to the overuse of a common resource d.The driver is making the market more efficient

d.The driver is making the market more efficient

A university offers a free shuttle that becomes uncomfortably crowded at lunch time. The shuttle is an example of a.a positive externality b.an economically unfair allocation of recourses c.a public good d.a Tragedy of the Commons

d.a Tragedy of the Commons

Which of the following is an example of general knowledge, as opposed to specific knowledge that can be patented? a.the invention of a puncture-resistant soap bubble b.the chemical formula for a breakthrough drug c.a method for making a no-skid tire d.a physics theorem

d.a physics theorem

Which of the following is not a common resource? a.open grazing land b.the cleanliness of a house where cleaning is a shared duty c.the atmosphere d.an uncongested toll highway

d.an uncongested toll highway

Which of the following pairs of goods includes a good that is excludable and not rival in consumption as well as a good that is not excludable and not rival in consumption? a.congested nontoll road, physics theorem b.radio broadcast, ice cream cone c.a private golf course that always has available tee times, tablet computer d.cable TV, national defense

d.cable TV, national defense

Suppose that the town of Winterville is considering hiring an additional lifeguard. The expected benefit is estimated to be worth $2 for each of Winterville's 12,000 residents. The town should hire the lifeguard a.if the cost of the new lifeguard is greater than $24,000. b.under no circumstances because the costs exceed the benefits. c.at any cost because any reduction in risk of drowning is priceless. d.if the cost of the new lifeguard is less than $24,000.

d.if the cost of the new lifeguard is less than $24,000.

It would always be a mistake to view a.the atmosphere as a common resource. b.a streetlight as a public good. c.a toll road as a private good. d.internet access without a password as a club good.

d.internet access without a password as a club good.

Which of the following is an example of a private good? a.membership in a basketball league made up of friends who meet at a local playground where they have to wait for a court to be available b.membership in a basketball league made up of friends who meet at a local playground that always has open courts available c.membership in a basketball league that requires a registration fee but always has open courts available d.membership in a basketball league that requires a registration fee and a wait for

d.membership in a basketball league that requires a registration fee and a wait for a court to be available

Which of the following is an example of a club good? a.free wifi at an airport b.a pair of shoes c.a public tennis court d.mobile phone service

d.mobile phone service

A mathematical theorem can be used by anyone without diminishing its use by someone else. For this reason, we say that a mathematical theorem is a.excludable b.not excludable c.rival in consumption d.not rival in consumption

d.not rival in consumption

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The table shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $2200 and the four families have agreed to split the equipment costs equally. Which families, if any, would be opposed to buying any playground equipment? a.only Washington, Yollo, and Zed b.Washington, Xavier, Yollo, and Zed c.only Zed d.only Washington and Zed

d.only Washington and Zed

Refer to the table. Consider the island of Moreau, which has four families, the Washington family, the Xavier family, the Yollo family, and the Zed family. The island does not currently have any playground equipment, and the families are considering the idea of contributing to a pool of money that will be used to buy up to 4 pieces of equipment. The above table shows each family's willingness to pay for each piece of playground equipment.Suppose the cost of a piece of playground equipment is $1100 and the four families have agreed to split the equipment costs equally. Which families would be in favor of buying at least 3 pieces of equipment? a.Washington, Xavier, Yollo, and Zed b.only Xavier c.only Washington, Xavier, and Yollo d.only Xavier and Yollo

d.only Xavier and Yollo

Without government intervention, common resources tend to be a.underconsumed, and public goods tend to be overproduced. b.underconsumed, and public goods tend to be underproduced. c.overconsumed, and public goods tend to be overproduced. d.overconsumed, and public goods tend to be underproduced.

d.overconsumed, and public goods tend to be underproduced.

A ticket to a highly anticipated blockbuster movie on opening weekend is an example of a a.club good. b.public good. c.common resource. d.private good.

d.private good.

Because of the free-rider problem, a.lighthouses are being closed throughout the country. b.hospital emergency room visits are rising. c.railways spend too much on checking tickets. d.private markets tend to underallocate resources to the production of public goods.

d.private markets tend to underallocate resources to the production of public goods.

National defense is often used as an example of a public good because a.it enjoys bipartisan support in Congress. b.it is so clearly in the public interest. c.providing it has always been the responsibility of the government d.providing it to one person does not generally diminish the nation's ability to provide it to another.

d.providing it to one person does not generally diminish the nation's ability to provide it to another.

If it were built to protect the whole world, an asteroid collision protection system would be an example of a a.global good b.club good c.common resource d.public good

d.public good

Which of the following is likely to face extinction? a.cats living as pets b.a breed of mice used for scientific experiments c.sheep living on farms and sheared for their wool d.rhinoceros living in the wild

d.rhinoceros living in the wild

The free-rider problem is least likely to occur when a.the number of beneficiaries is large and it is impossible to prevent people from benefiting. b.the number of beneficiaries is large and it is possible to prevent people from benefiting. c.the number of beneficiaries is small and it is impossible to prevent people from benefiting. d.the number of beneficiaries is small and it is possible to prevent people from benefiting.

d.the number of beneficiaries is small and it is possible to prevent people from benefiting.

Which of the following is a reason why government agencies subsidize basic research? a.the social benefit of additional knowledge is perceived to be less than the cost of the subsidies. b.the patents on basic research is a source of revenue for government agencies. c.the government wants to attract the brightest researchers away from private research firms. d.unpatentable research receives too little resources from the private market

d.unpatentable research receives too little resources from the private market