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.