Microeconomics Homework Ch. 11

The provision of public goods gives rise to

A. negative externalities, as does the use of common resources.
B. positive externalities, whereas the use of common resources gives rise to negative externalities.
C. negative externalities, whereas the use of common resources gives rise to positive externalities.
D. positive externalities, as does the use of common resources.

A good is excludable if

A. one person's use of the good diminishes another person's enjoyment of it.
B. the government can regulate its availability.
C. it is not a normal good.
D. people can be prevented from using it.

Goods that are not excludable are usually

A. higher priced than excludable goods.
B. in short supply.
C. higher priced than rival goods.
D. free of charge.

When a good is rival in consumption,

A. people can be prevented from using the good.
B. one person's use of the good diminishes another person's ability to use it.
C. an unlimited number of people can use the good at the same time.
D. everyone will be excluded from obtaining the good.

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

A. public good.
B. nonrival but excludable good.
C. rival but nonexcludable good.
D. private good.

A congested side street in your neighborhood is

A. not excludable and not rival in consumption.
B. not excludable and rival in consumption.
C. excludable and rival in consumption.
D. excludable and not rival in consumption.

A streetlight is a

A. private good.
B. public good.
C. common resource.
D. club good.

Without government intervention, public goods tend to be

A. underproduced and common resources tend to be overconsumed.
B. overproduced and common resources tend to be overconsumed.
C. underproduced and common resources tend to be underconsumed.
D. overproduced and common resources tend to be underconsumed.

A free rider is a person who

A. can produce a good at no cost.
B. rides public transit regularly.
C. will only purchase a product on sale.
D. receives the benefit of a good but avoids paying for it.

The free-rider problem exists with

A. congested toll roads.
B. cable TV service.
C. knowledge.
D. apples.

Because of the free-rider problem,

A. fireworks displays have become increasingly dangerous.
B. the federal government spends too many resources on national defense and not enough resources on medical research.
C. poverty has increased.
D. private markets tend to undersupply public goods.

Which of the following is not a common resource?

A. national defense
B. open grazing land
C. clean water
D. clean air

An overcrowded beach is an example of

A. an economically unfair allocation of resources.
B. a Tragedy of the Commons.
C. a positive externality.
D. an environmentally inefficient allocation of resources.

The Tragedy of the Commons for sheep grazing on common land can be eliminated by the government doing each of the following except

A. auctioning off sheep-grazing permits.
B. assigning land property rights.
C. taxing sheep flocks.
D. subsidizing sheep flocks.

If the use of a common resource is not regulated,

A. it will tend to be underused.
B. no one can enjoy it.
C. it will be overused.
D. property rights will be clearly defined.