Chp. 11 Quiz

Which of the following statements about private goods and public goods is correct? A) Private goods are rival in consumption and public goods are not excludable. B) Private goods are not excludable and public goods are excludable. C) Private goods and public goods are both excludable. D) Private goods and public goods are both rival in consumption.

A) Private goods are rival in consumption and public goods are not excludable.

A free rider is a person who A) can produce a good at no cost. B) receives the benefit of a good but avoids paying for it. C) will only purchase a product on sale. D) rides public transit regularly.

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

Producers have little incentive to produce a public good because A) there is a Tragedy of the Commons. B) there is a free-rider problem. C) the social benefit is less than the social cost. D) the social benefit is less than the private benefit.

B) there is a free-rider problem.

The overuse of a common resource relative to its economically efficient use is called A) a public good. B) the free rider problem. C) the Tragedy of the Commons. D) cost-benefit analysis.

C) the Tragedy of the Commons.

Goods that are rival in consumption and nonexcludable would be considered A) club goods. B) private goods. C) public goods. D) common resources.

D) common resources.