ECON chp11 study questions

which of the following would NOT be considered a private good

cable TV

studies show that the value of a human life is about

10 million

the tragedy of the commons occurs because

a common resource is rival in consumption

if the local government in Richmond, Missouri decides to put on a public fireworks display, the display would be

a public good

environmental degradation is NOT

always best resolved by direct regulation

a good that is rival but not excludable would be a

common resource

once a common resource is available for consumption, policymakers need to be concerned with

how much is consumed

market failure with common resources occurs because

consumption can be privately profitable even when it is socially undesirable

when something of value has no price attached to it such as a public good

externalities will be present

which of the following is NOT considered a public good

fire protection

each of the following explain why cost-benefit analysis is difficult except

government projects rarely have sufficient funding to complete projects on time

the tragedy of the commons

is eliminated when property rights are assigned to individuals

national defense is a classic example of a public good because

it is difficult to exclude people from receiving the benefits from national defense once it is provided

which of the following goods would satisfy attributes of a natural monopoly

local cable television

goods that are not rival include both

natural monopolies & public goods

when one person uses a common resource, which will NOT occur

no one else will be able to use the common resource

each of the following are provided by nature EXCEPT

parks

when a good is excludable it means that

people can be prevented from using the good

in a market for a good like ice-cream cones,

price adjusts to balance supply and demand

in almost all cases, the problem with overuse of common resources is that

private decision makers use the common resource too much

fire protection is a good example of a natural monopoly because

protecting an extra house is unlikely to reduce the protection available to others

if one persons use of a good diminishes another person's enjoyment of it, the good is

rival

private markets usually fail to provide lighthouses because

ship captains have incentives to use lighthouses without paying

road tolls used to reduce traffic can be desirable because of each of the following EXCEPT

the administrative costs are virtually nonexistent

when goods are not excludable

the free-rider problem prevents the private market from supplying them

which of the following is NOT a reason why government agencies subsidize basic research

the government attempts to attract the best and the brightest researchers

One of the least regulated common resources today is

the ocean

when one person uses a common resource, such as fish in the ocean, which would not be true

there will still be enough left, since one person cannot make a major impact

simply asking people how much they have value a highway is not a reliable way of measuring the benefits and costs because

those who stand to lose have an incentive to exaggerate their true costs

when a free-rider problem exists

too few resources are devoted to the good

some goods can be either common resources or public goods depending on

whether the good is rival