Question 1

Which of the following quotations illustrates the Tragedy of the Commons?

Accepted Answer

A)   "A bird in the hand is worth two in the bush."
B)   "The only difference between the rich and other people is that the rich have more money."
C)   "What is common to many is taken least care of, for all men have greater regard for what is their own than for what they possess in common with others."
D)   "Anyone who is not a socialist before he is 30 has no heart; anyone who is still a socialist after he is 30 has no head."E) B) and D)
F) None of the above

Question 2

The provision of a public good generates a

Accepted Answer

A)   positive externality, as does the use of a common resource.
B)   positive externality and the use of a common resource generates a negative externality.
C)   negative externality, as does the use of a common resource.
D)   negative externality and the use of a common resource generates a positive externality.E) A) and B)
F) A) and C)

Question 3

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.We might expect that

Accepted Answer

A)   over time, the aquifer is likely to be overused.
B)   each farmer has a sufficient incentive to conserve the water.
C)   state governments have an incentive to insure that their farmers do not overuse the water.
D)   resources would be used more efficiently if the government paid for the pumps farmers use to get the water.E) All of the above
F) A) and D)

Question 4

Nontoll roads can be either public goods or common resources,depending upon the degree of congestion.

Accepted Answer

A) True 
 B)False

Question 5

Nine friends who love the beach decide to pool their financial resources and equally share the cost of a one-week house rental on Nantucket.Suppose that the beach outside of the house becomes more congested when the nine additional people join the other beachgoers.Which of the following statements is not correct?

Accepted Answer

A)   Use of the beach by the nine new beachgoers will yield a negative externality.
B)   The town can reduce the congestion externality by raising the fee to access the beach.
C)   An increase in the fee to access the beach could be viewed as a corrective tax on the externality of congestion.
D)   Each of the nine friends would have been better off staying at home.E) A) and C)
F) A) and B)

Question 6

Figure 11-1
 
-Refer to Figure 11-1.Cable TV is an example of the type of good represented by Box

Accepted Answer

A)   A.
B)   B.
C)   C.
D)   D.E) A) and B)
F) A) and C)

Question 7

The Occupational Safety and Health Administration (OSHA) has determined that 100 workers are exposed to a hazardous chemical used in the production of diet soft drinks.The cost of imposing a regulation that would ban the chemical is $10 million.OSHA has calculated that each person saved by this regulation has a value equal to $10 million.If the benefits are exactly equal to the costs,what probability is OSHA using to assess the likelihood of a fatality from exposure to this chemical?

Accepted Answer

A)   0.001
B)   0.01
C)   0.1
D)   1.0E) None of the above
F) A) and C)

Question 8

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

Accepted Answer

A) True 
 B)False

Question 9

Figure 11-1
 
-Refer to Figure 11-1.The box labeled A represents

Accepted Answer

A)   private goods.
B)   club goods.
C)   common resources.
D)   public goods.E) A) and B)
F) B) and C)

Exam 11: Public Goods and Common Resources.

Nontoll roads can be either public goods or common resources,depending upon the degree of congestion.

Correct Answer
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The provision of a public good generates a

Correct Answer
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When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

Correct Answer
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Which of the following quotations illustrates the Tragedy of the Commons?

Correct Answer
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Correct Answer
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Figure 11-1 -Refer to Figure 11-1.The box labeled A represents

Correct Answer
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The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.We might expect that

Correct Answer
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Correct Answer
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Figure 11-1 -Refer to Figure 11-1.Cable TV is an example of the type of good represented by Box

Correct Answer
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Exam 11: Public Goods and Common Resources.

Nontoll roads can be either public goods or common resources,depending upon the degree of congestion.

Correct AnswerverifiedShow Answer

The provision of a public good generates a

Correct AnswerverifiedShow Answer

When goods are available free of charge,the market forces that normally allocate resources in our economy are absent.

Correct AnswerverifiedShow Answer

Which of the following quotations illustrates the Tragedy of the Commons?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.The box labeled A represents

Correct AnswerverifiedShow Answer

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.We might expect that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 11-1 -Refer to Figure 11-1.Cable TV is an example of the type of good represented by Box

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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