Module 37

Regarding public and private goods, _____________.

- rival means one person's use of a good increases another's possibility of using it - a public good is rival and excludable - a television is a public good - a grocery store sells primarily public goods

True or False: Both private goods and common pool resources are non-rival.

False

True or False: Club goods, like movie theaters, are rival and non-excludable.

False

True or False: Funds for fire protection come from the federal government.

False

True or False: The Singapore solution illustrated that paying tolls and license fees does not have any effect on traffic congestion and pollution.

False

A fire department's service is _____________.

Private Good

Public goods include _____________.

Sandwiches

True or False: A cost-benefit analysis helps governments decide if a project's benefits are greater than its cost.

True

True or False: Both public goods and common pool resources are non-excludable.

True

True or False: Federal tax revenues include payroll taxes.

True

True or False: Funds for police protection come from state and local governments.

True

True or False: The free-rider problem exists when non-payers benefit from a good or service without directly paying.

True

Regarding government spending, _____________.

much of state governments' spending goes toward Social Security payments

Regarding the government and market forces, _____________.

people depend on market forces to ensure clean air and water

Regarding non-payers and the free-rider problem, _____________.

the free-rider problem cannot be addressed through taxes

In the case of the fire department's services, _____________.

the private sector would definitely offer them