Chapter 17 Micro

Whether or not they pay for them, people cannot be excluded from receiving the benefits of: - private goods. - public goods. - common resources. - either public goods or common resources.

- either public goods or common resources.

A private good is - excludable and rival in consumption. - nonexcludable and nonrival in consumption. - excludable and nonrival in consumption. - nonexcludable and rival in consumption

- excludable and rival in consumption.

A good is most likely to be artificially scarce if: - it is nonexcludable and nonrival. - the seller is a monopolist. - it is nonexcludable but rival. - it is excludable but nonrival.

- it is excludable but nonrival.

For a good to be efficiently provided by the private market, which of the following is essential? It is rival in consumption. It is excludable. It is a common resource. It is rival in consumption and it is excludable.

It is rival in consumption and it is excludable.

If the market produces an efficient level of a good, then we know that the good must be ________ and ________ in consumption. nonexcludable; nonrival nonexcludable; rival excludable; nonrival excludable; rival

excludable; rival

The tendency of people or firms to consume a public good without paying for it is called the ________ problem. free-cost free-rider free-goods free-market

free-rider

For a common resource, the marginal benefit at the quantity provided by a private market is ________ the marginal social cost. equal to greater than less than greater than or equal to

less than

Common resources tend to be ________ through private markets. associated with prices that are too high be efficiently priced overconsumed underconsumed

overconsumed

Stephanie stops at a gas station to fill up the tank of her car. The gallons of unleaded gasoline in her tank are best described as: private goods. public goods. artificially scarce goods. common resources.

private goods.

The free-rider problem is a direct result of: the inability to exclude nonpayers. marginal-cost pricing. full-cost pricing. horizontally summed supply curves.

the inability to exclude nonpayers.

A characteristic of public goods is that: people pay for them in proportion to the benefits received. the costs of producing them are less than if they were private goods. their benefits cannot be withheld from anyone, regardless of whether a person pays for them. they are produced only by the public sector, not by the private sector.

their benefits cannot be withheld from anyone, regardless of whether a person pays for them.

A public good is a good or service for which exclusion is: - possible and which is rival in consumption. - possible and which is nonrival in consumption. - not possible and which is rival in consumption. - not possible and which is nonrival in consumption.

- not possible and which is nonrival in consumption.

An artificially scarce good is a good or service for which exclusion is: - possible and is rival in consumption. - possible and is nonrival in consumption. - not possible and is rival in consumption. - not possible and is nonrival in consumption.

- possible and is nonrival in consumption.

If a good has a marginal cost of production of zero and an inefficiently low level of consumption, the good must be a(n): private good. public good. common resource. artificially scarce good.

artificially scarce good.

Public goods differ from common resources in that: both are nonrival in consumption, but public goods are excludable, while common resources are nonexcludable. both are excludable, but public goods are nonrival in consumption, while common resources are rival in consumption. both are nonexcludable, but public goods are nonrival in consumption, while common resources are rival in consumption. both are rival in consumption, but public goods are nonexcludable, while common resources are excludable

both are nonexcludable, but public goods are nonrival in consumption, while common resources are rival in consumption.

A public good is a good: whose consumption is nonexcludable and nonrival. for which the marginal cost of adding another consumer is high. that the market will usually provide efficiently. whose consumption is rival.

whose consumption is nonexcludable and nonrival.

The marginal cost of producing an artificially scarce good is equal to: zero. the marginal benefit if consumer surplus equals zero. the marginal social cost. its price.

zero.