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
