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