micro 19

Which of the following is a list of common resources ONLY?

a public beach, soup kitchen meals, public roads

Nonexcludable:

A good is nonexcludable if people who don't pay cannot be easily prevented from using the good.

Nonrival:

A good is nonrival if one person's use of the good does not reduce the ability of another person to use the same good

Private Goods:

Are excludable and rival.

Public Goods:

Are nonexcludable and nonrival.

Nonrival Private Goods:

Goods that are excludable but nonrival.

Common Resources:

Goods that are nonexcludable but rival.

Solving a tragedy of the commons problem could be done through: I. establishment of property rights over the common resource. II. the invisible hand. III. government-armed protection

I and III only

A fireworks display is an example of a:

Public good.

Tragedy of the Commons:

The tendency of any resource that is unowned and hence nonexcludable to be overused and undermaintained

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; nonexcludable

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.

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.

A free rider is a person who:

receives the benefits 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