Chapter 11

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except A. subsidizing sheep flocks B. auctioning off sheep grazing permits C. assigning land property rights D. taxing sheep flcoks

A. subsidizing sheep flcoks

An overcrowded beach is an example of

a Tragedy of the Commons

Goods that are not excludable are usually

free of charge

If the use of a common resource is not regulated,

it will be overused

The free-rider problem exists with

knowledge

Which of the following is not a common resource? A. open grazing land B. national defense C. clean water D. clean air

national defense

A view of a spectacular sunset along a private beach is an example of a

nonrival but excludable good

A congested side street in your neighborhood is

not excludable and rival consumption

When a good is rival in consumption

one person's use of the good diminishes another person's ability to use it

A good is excludable if

people can be prevented from using it

The provision of public goods gives rise to

positive externalities, whereas the use of common resources gives rise to negative externalities

Because of the free-rider problem,

private markets tend to undersupply public goods

A streetlight is a

public good

A free rider is a person who

receives a benefit of a good but avoids paying for it

Without government intervention, public goods tend to be

underproduced and common resources tend to be overconsumed