microeconomics chp 11

A free-rider problem exists for any good that is not: a. excludable b. a private good c. free d. rival in consumption

a. excludable

Pay-per-view broadcasts are: a. private goods b. natural monopolies c. common resources d. public goods

b. natural monopolies

Goods that are not rival in consumption include both: a. private goods and common resources b. natural monopolies and public goods c. common resources and public goods d. private goods and natural monopolies

b. natural monopolies and public goods

Governments can improve market outcomes for: a. public goods but not common resources b. common resources but not public goods c. both public goods and common resources d. neither public goods nor common resources

c. both public goods and common resources

At the local park there is a playground for children to use. While anyone is allowed to use the playground, it is often very busy, reducing the enjoyment of many of the children who use it. The playground is a: a. private good b. natural monopoly c. common resource d. public good

c. common resource

Goods that are not excludable include both: a. private goods and public goods b. natural monopolies and common resources c. common resources and public goods d. private goods and natural monopolies

c. common resources and public goods

Private decisions about consumption of common resources and production of public goods usually lead to an: a. efficient allocation of resources and external effects b. efficient allocation of resources and no external effects c. inefficient allocation of resources and external effects d. inefficient allocation of resources and no external effects

c. inefficient allocation of resources and external effects

The national defense of the United States is not rival because: a. once the nation is defended, it is possible to prevent any single person from enjoying the benefit of this defense b. my enjoyment of the national defense does diminish your enjoyment of the national defense of the United States c. my enjoyment of the national defense does NOT diminish your enjoyment of the national defense of the United States d. once the nation is defended, it is impossible to prevent any single person from enjoying the benefit of this defense

c. my enjoyment of the national defense does NOT diminish your enjoyment of the national defense of the United States

Too few resources are devoted to the creation of knowledge because profit-seeking firms: a. undervalue knowledge in their pursuit of revenues b. overuse their patents c. tend to free-ride on the knowledge that others have developed d. tend to rely on existing employee knowledge

c. tend to free-ride on the knowledge that others have developed

Government policy can potentially raise economic well-being: a. in all markets for goods and services b. in economic models, but not in reality c. when a good does not have a price attached to it d. never

c. when a good does not have a price attached to it

A lighthouse is typically considered to be a public good because: a. the owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse b. there is rarely another lighthouse nearby to provide competition c. a nearby port authority cannot avoid paying fees to the lighthouse owner d. all passing ships are able to enjoy the benefits of the lighthouse without paying

d. all passing ships are able to enjoy the benefits of the lighthouse without paying

An AM radio transmission of a baseball game is: a. excludable and rival in consumption b. excludable and not rival in consumption c. not excludable and rival in consumption d. not excludable and not rival in consumption

d. not excludable and not rival in consumption

At the local park there is a playground that anyone may use. There is rarely anyone using the playground, so children who use the playground receive full enjoyment from its use. The playground is: a. rival in consumption and is excludable b. not rival in consumption, but is excludable c. rival in consumption, but is not excludable d. not rival in consumption nor is it excludable

d. not rival in consumption nor is it excludable

Goods that are excludable include both: a. natural monopolies and public goods b. public goods and common resources c. common resources and private goods d. private goods and natural monopolies

d. private goods and natural monopolies

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. auctioning off sheep-grazing permits c. taxing sheep flocks d. subsidizing sheep flocks

d. subsidizing sheep flocks