econ chp 19 Public Goods

Which of the following would be the best example of a free-rider?

A person without health insurance visiting an emergency room because they can't be turned away

Which of the following is an example of a common property resource?

A river

Which of the following best represents a tragedy of the commons?

A severe traffic jam on the freeway

Which of the following best describes the difference between public television and on-demand cable television?

Both are nonrival but public television is nonexclusive.

Which of the following best describes the difference between AM radio and satellite radio?

Both are nonrival but satellite radio is exclusive

What happens to consumer surplus when a common good is overused?

It decreases

Which of the following best describes public radio?

Pure public good

Which of the following best describes a slice of pizza?

Rival and exclusive

Which of the following is the best example of a public good with exclusion?

Satellite radio service

In which of the following situations does a free rider problem occur?

Someone who benefits from a good does not have to pay for it.

Public goods often face the:

free rider problem

Public goods are:

goods in which one person's consumption does not diminish the benefit to others from consuming the good, and once provided, no one person can be excluded from consuming.

The free rider problem is that:

if people cannot be prevented from consuming a certain good, they have little incentive to pay for it.

Generally, the amount of public goods available in a society is _____ what is actually desired.

less than

The market equilibrium price for a public good is where:

marginal cost equals the vertical summation of individual demands.

For a good that is _____, the market equilibrium price is where marginal cost equals the vertical summation of individual demands.

nonrival and nonexclusive

The free rider problem:

occurs when an individual can avoid paying for a public good because he or she cannot be excluded from enjoying the good once provided.

Common property resource goods are:

rival and nonexclusive.

Which of the following would be the best example of a public good?

snowplowing the streets

Because people have little incentive to use resources owned by the community at large in a sustainable fashion, they tend to be overexploited and depleted. This is an example of:

the tragedy of the commons.