Chapter 11
When a good is rival in consumption, A. one person's use of the good diminishes another person's ability to use it. B. an unlimited number of people can use the good at the same time. C. everyone will be excluded from obtaining the good. D. people can be prevented from using the good.
A. one person's use of the good diminishes another person's ability to use it.
Because of the free-rider problem, A. private markets tend to undersupply public goods. B.the federal government spends too many resources on national defense and not enough resources on medical research. C. fireworks displays have become increasingly dangerous. D. poverty has increased.
A. private markets tend to undersupply public goods.
The provision of public goods gives rise to A.positive externalities, whereas the use of common resources gives rise to negative externalities. B. negative externalities, whereas the use of common resources gives rise to positive externalities. C. positive externalities, as does the use of common resources. D. negative externalities, as does the use of common resources.
A.positive externalities, whereas the use of common resources gives rise to negative externalities.
Goods that are not excludable are usually A. higher priced than rival goods. B. free of charge. C. in short supply. D. higher priced than excludable goods.
B. free of charge.
Which of the following is not a common resource? A. clean air B. national defense C. clean water D. open grazing land
B. national defense
A free rider is a person who A. can produce a good at no cost. B. receives the benefit of a good but avoids paying for it. C. rides public transit regularly. D. will only purchase a product on sale.
B. receives the benefit of a good but avoids paying for it.
An overcrowded beach is an example of A. an economically unfair allocation of resources. B. an environmentally inefficient allocation of resources. C. a Tragedy of the Commons. D. a positive externality.
C. a Tragedy of the Commons.
The free-rider problem exists with A. cable TV service. B. apples. C. knowledge. D. congested toll roads.
C. knowledge.
A view of a spectacular sunset along a private beach is an example of a A. private good. B. public good. C. nonrival but excludable good. D. rival but nonexcludable good.
C. nonrival but excludable good.
A good is excludable if A. the government can regulate its availability. B. it is not a normal good. C. people can be prevented from using it. D. one person's use of the good diminishes another person's enjoyment of it.
C. people can be prevented from using it.
A streetlight is a A. common resource. B. club good. C. public good. D. private good.
C. public good.
If the use of a common resource is not regulated, A. no one can enjoy it. B. it will tend to be underused. C. property rights will be clearly defined. D. it will be overused.
D. it will be overused.
A congested side street in your neighborhood is A. not excludable and not rival in consumption. B. excludable and not rival in consumption. C. excludable and rival in consumption. D. not excludable and rival in consumption.
D. not excludable and rival in consumption.
The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except A. assigning land property rights. B. taxing sheep flocks. C. auctioning off sheep-grazing permits. D. subsidizing sheep flocks.
D. subsidizing sheep flocks.
Without government intervention, public goods tend to be A. overproduced and common resources tend to be underconsumed. B. overproduced and common resources tend to be overconsumed. C. underproduced and common resources tend to be underconsumed. D. underproduced and common resources tend to be overconsumed.
D. underproduced and common resources tend to be overconsumed
