LearningCurve - Chapter 17: Public Goods and Common Resources
The graph shows the marginal benefit curve for Jane and Sally, who have identical marginal benefit curves for garbage pick-ups on their street per month. What is the total benefit of 4 pick-ups per month? $120 $320 $240 $500
$320
The table shows the total cost and the total individual benefit of having park rangers in a city park. Assume that the park has 1000 visitors each day and that everyone's preferences are the same. Without government involvement, the private market would hire _____ rangers.
0
The graph represents the market for Alaskan king crabs. The private market will produce a quantity of _____.
B
The graph represents the market for Alaskan king crabs. The price in the private market will be _____.
C
The graph represents the market for Alaskan king crabs. The efficient output is quantity _____.
E
True or False: Consumption of cable television is likely to be inefficiently low because it is excludable and nonrival. This is _____.
True
True or False: Creating a system of tradable licenses that allow people to use common resources is a means of internalizing the social cost. This is _____.
True
True or False: Groundwater is a common resource. This is _____.
True
True or False: Production of police protection is likely to be inefficiently low in a market economy. This is _____.
True
All of the following could be considered public goods EXCEPT: national defense. the legal system. a computer printer. a city park.
a computer printer.
Which of the following goods is a private good? an apple pay-per-view movies national defense the warning from a weather siren
an apple
A good that is excludable and nonrival in consumption is a(n): public good. common resource. private good. artificially scarce good.
artificially scarce good.
The private market will provide: a zero quantity of an artificially scarce good. the efficient quantity of an artificially scarce good. more than the efficient quantity of an artificially scarce good. less than the efficient quantity of an artificially scarce good.
less than the efficient quantity of an artificially scarce good.
Which good is the BEST example of a public good? a motorcycle helmet a flashlight a chess set national defense
national defense
Which good is the BEST example of a public good? pet sitting police protection popcorn plywood
police protection
A pizza is an example of a(n) private good. public good. common resource. artificially scarce good.
private good.
A good that is nonrival in consumption and nonexcludable is a(n): public good. common resource. private good. artificially scarce good.
public good.
Construction of a system of levees and dams to provide flood protection is a(n): artificially scarce good. public good. common resource. private good.
public good.
The difference between a common resource and a public good is that the common resource is: nonexcludable and the public good is excludable. rival in consumption and the public good is nonrival. excludable and the public good is nonexcludable. nonrival in consumption and the public good is rival.
rival in consumption and the public good is nonrival.
All of the following could be considered public goods EXCEPT: shoulder surgery. a fireworks display. scientific research. a flood control dam.
shoulder surgery.
The graph represents the demand for online subscriptions to Consumer Report. The efficient price of subscriptions is _____ dollars.
0
True or False: To ensure the efficient use of common resources, the cost of using those resources must be internalized. This is _____.
True
The graph represents the market for Alaskan king crabs. The curve representing the marginal cost of the crab industry is curve _____.
H
Which good is the BEST example of a public good? a raincoat a system of sirens to warn of approaching storms a storm cellar a gasoline-powered electric generator
a system of sirens to warn of approaching storms
Goods for which consumption is inefficiently high are usually: private goods. artificially scarce goods. public goods. common resources.
common resources.
The graph represents the demand for online subscriptions to Consumer Report. If the market price of a subscription is $40, _____ million subscriptions will be sold.
10
The table shows the total cost and the total individual benefit of having park rangers in a city park. Assume that the park has 1000 visitors each day and that everyone's preferences are the same. The total social benefit of 3 rangers is _____ dollars.
120,000
Which good is the BEST example of a public good? a raincoat a system of sirens to warn of approaching storms a storm cellar a gasoline-powered electric generator
a system of sirens to warn of approaching storms
Which good is the BEST example of a public good? dance instruction jewelry repair broadcast television television repair
broadcast television
Which of the following goods is MOST likely to be under-produced in a market economy? airplane travel corn clean air computer printers
clean air
A good that is nonexcludable and rival in consumption is a(n): public good. private good. common resource. artificially scarce good.
common resource.
A good that is nonexcludable and rival in consumption is a(n): public good. private good. common resource. artificially scarce good.
common resource.
Which type of good suffers from inefficiently low production in a market economy? excludable nonrival rival nonexcludable
nonexcludable
A good is a common resource if it is: nonexcludable and rival in consumption. nonexcludable and nonrival in consumption. excludable and rival in consumption. excludable and nonrival in consumption.
nonexcludable and rival in consumption.
Which good is artificially scarce? protection of endangered species national defense sunscreen on-demand movies
on-demand movies
Which good is artificially scarce? protection of endangered species national defense sunscreen on-demand movies
on-demand movies
The table shows the total cost and the total individual benefit of having park rangers in a city park. Assume that the park has 1000 visitors each day and that everyone's preferences are the same. The total social benefit of 4 rangers is _____ dollars.
140,000
The graph represents the demand for online subscriptions to Consumer Report. The efficient quantity of subscriptions is _____ million.
20
The table shows the total cost and the total individual benefit of having park rangers in a city park. Assume that the park has 1000 visitors each day and that everyone's preferences are the same. The marginal social benefit of the fourth ranger is _____ dollars.
20,000
The table shows the individual marginal benefit per month that Al and Lew receive from the county spraying their neighborhood for mosquitoes. If the marginal cost of spraying is $30, _____ sprayings will maximize society's welfare.
3
The graph represents the market for Alaskan king crabs. The efficient price is _____.
F
True or False: Because of trade restrictions, imported caviar is an artificially scarce good. This is _____.
False
True or False: Clean water is a public good. This is _____.
False
True or False: Computer software is a nonexcludable good. This is _____.
False
True or False: National defense is a common resource. This is _____.
False
True or False: The horizontal sum of individual demand curves is equal to the marginal social benefit of a public good. This is _____.
False
True or False: The private market will provide the efficient amount of electronic textbooks. This is _____.
False
True or False: Public goods may be provided by the government. This is _____.
True
Which good is the BEST example of a public good? disease prevention a smart phone a hot air balloon ride an antique car
disease prevention
A good is _____ if the supplier of that good can prevent people who do not pay from consuming it. rival inferior nonexcludable excludable
excludable
A good is a private good if it is: nonexcludable and nonrival in consumption. excludable and nonrival in consumption. excludable and rival in consumption. nonexcludable and rival in consumption.
excludable and rival in consumption.