Question 1

In 2008, Google lobbied the Federal Communications Commission to open up some of the available wireless spectrum to Google so that they may offer a free national wireless Internet service. Given that Internet subscribers currently pay anywhere from $10 to $100 per month for service, explain why Google would be willing to give such a valuable service away for free.

Accepted Answer

Giving away the service without charge g...

Question 2

Which of the following is a list of excludable and nonrival goods only?

Accepted Answer

A)   cable Internet service, toll highways, public roads, soup kitchen meals
B)   online video games, a private beach, toll highways, cable Internet service
C)   a public beach, soup kitchen meals, public roads, smog reduction
D)   national defense, a lighthouse, smog reduction, cable Internet serviceE) C) and D)
F) A) and B)

Question 3

Which of the following is a list of nonrival private goods only?

Accepted Answer

A)   cable Internet service, toll highways, public roads, soup kitchen meals
B)   a public beach, soup kitchen meals, public roads, smog reduction
C)   online video games, a private beach, toll highways, cable Internet service
D)   national defense, a lighthouse, smog reduction, cable Internet serviceE) A) and B)
F) A) and D)

Question 4

The tragedy of the commons refers to the:

Accepted Answer

A)   underproduction of public goods in economic markets.
B)   underproduction of a common good.
C)   overuse of a nonrival and nonexcludable good.
D)   overuse of a rival but nonexcludable good.E) None of the above
F) A) and B)

Question 5

To use a ______ good without paying is typically legal. To use a ______ good without paying is typically illegal.

Accepted Answer

A)   private; public
B)   public; private
C)   public; inexpensive
D)   inexpensive; privateE) A) and D)
F) C) and D)

Question 6

The incentive to dedicate private resources to maintaining a common resource is low because:

Accepted Answer

A)   there is no benefit from maintenance of a common resource.
B)   entrepreneurs have not found a way to profit from common resources.
C)   the benefits of maintenance are external, not private benefits.
D)   maintenance is very expensive.E) A) and B)
F) None of the above

Question 7

Already, nearly 30% of seafood species have collapsed.

Accepted Answer

A) True 
 B)False

Question 8

The tragedy of the commons is the tendency for any good which is:

Accepted Answer

A)   rival and excludable to be underused and overmaintained.
B)   nonrival and nonexcludable to be underused and overmaintained.
C)   rival and nonexcludable to be overused and undermaintained.
D)   nonrival and excludable to be overused and undermaintained.E) C) and D)
F) A) and B)

Question 9

In the case of broadcast, antenna television, the ______ problem is partly overcome through the use of advertising.

Accepted Answer

A)   free rider problem
B)   revenue stream problem
C)   liquidity problem
D)   accessibility problemE) A) and B)
F) All of the above

Question 10

A solution to the tragedy of the commons is to convert common resources to public goods.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is FALSE?

Accepted Answer

A)   The total benefit of a public good equals the sum of the benefits to each person.
B)   It is harder for society to produce optimal amounts of public goods than it is for private goods.
C)   The United States Postal Service is not a public good.
D)   People value public goods differently.E) None of the above
F) B) and C)

Question 12

Many states have strict regulations regarding the hunting of big game animals (i.e., bison, elk, moose, etc.). For example, in the state of Washington, hunters wishing to hunt elk must purchase a tag. Upon purchase of the tag, individuals must decide in advance on the area in which they wish to hunt and with which weapon, and they are locked into these decisions for the entire season. Each person may purchase only one tag per year and, in 2009, the cost for a nonresident of Washington to purchase a tag was $396.Why would state governments impose such strict regulations on the hunting of big game in their states? Would the cost of an elk tag for residents of Washington be higher or lower than the cost for nonresidents? Explain.

Accepted Answer

Governments impose these regulations to ...

Question 13

A good is nonrival if:

Accepted Answer

A)   the good does not cause rivalry between the people using the good.
B)   the good potentially creates rivalry between the people using the good.
C)   one person's use of the good reduces the ability of another person to use the same good.
D)   one person's use of the good does not reduce the ability of another person to use the same good.E) C) and D)
F) None of the above

Question 14

Although the provision of nonrival private goods is ________, we typically consider it ________.

Accepted Answer

A)   efficient; an inefficient allocation due to its nonrival nature
B)   inefficient; not that big a deal because we value diversity and creativity
C)   inefficient; a big deal because it leads to many forced riders
D)   efficient; a big deal because it leads to other types of market inefficienciesE) A) and C)
F) A) and D)

Question 15

A rival good is one where:

Accepted Answer

A)   one person's use does not impinge on another person's ability to enjoy the same good.
B)   one person's use prevents another person's ability to use that good at the same time.
C)   two people can use the same good at the same time.
D)   the good is simultaneously nonexcludable and public.E) A) and B)
F) A) and C)

Question 16

A public good is:

Accepted Answer

A)   nonrival and nonexcludable.
B)   rival and nonexcludable.
C)   rival and excludable.
D)   nonrival and excludable.E) All of the above
F) A) and D)

Question 17

The government can increase economic efficiency by using tax revenue to produce public goods.

Accepted Answer

A) True 
 B)False

Question 18

Radio is a:

Accepted Answer

A)   private good.
B)   public good.
C)   common resource.
D)   nonrival private good.E) C) and D)
F) All of the above

Question 19

Which of the following scenarios best describes a tragedy of the commons problem?

Accepted Answer

A)   Neighborhood residents discover strawberry plants in the flower beds at the city park.
B)   Illegal immigrants who do not pay taxes benefit from tax-funded police patrols.
C)   Pacifists become forced riders in tax hikes to fund national defense plans.
D)   There is overcrowding on otherwise nice public beaches.E) A) and B)
F) All of the above

Question 20

A public roadway is an example of a good that is excludable and nonrival.

Accepted Answer

A) True 
 B)False

Exam 19: Public Goods and the Tragedy of the Commons

A good is nonrival if:

Correct Answer
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The tragedy of the commons refers to the:

Correct Answer
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Which of the following is a list of nonrival private goods only?

Correct Answer
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The tragedy of the commons is the tendency for any good which is:

Correct Answer
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A public good is:

Correct Answer
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In the case of broadcast, antenna television, the ______ problem is partly overcome through the use of advertising.

Correct Answer
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A solution to the tragedy of the commons is to convert common resources to public goods.

Correct Answer
verified

The government can increase economic efficiency by using tax revenue to produce public goods.

Correct Answer
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A rival good is one where:

Correct Answer
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To use a good without paying is typically legal. To use a good without paying is typically illegal.

Correct Answer
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Which of the following is a list of excludable and nonrival goods only?

Correct Answer
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Already, nearly 30% of seafood species have collapsed.

Correct Answer
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Correct Answer
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Governments impose these regulations to ...
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Which of the following statements is FALSE?

Correct Answer
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A public roadway is an example of a good that is excludable and nonrival.

Correct Answer
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Which of the following scenarios best describes a tragedy of the commons problem?

Correct Answer
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Although the provision of nonrival private goods is , we typically consider it .

Correct Answer
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Radio is a:

Correct Answer
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The incentive to dedicate private resources to maintaining a common resource is low because:

Correct Answer
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Correct Answer
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Giving away the service without charge g...
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Exam 19: Public Goods and the Tragedy of the Commons

A good is nonrival if:

Correct AnswerverifiedShow Answer

The tragedy of the commons refers to the:

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Which of the following is a list of nonrival private goods only?

Correct AnswerverifiedShow Answer

The tragedy of the commons is the tendency for any good which is:

Correct AnswerverifiedShow Answer

A public good is:

Correct AnswerverifiedShow Answer

In the case of broadcast, antenna television, the ______ problem is partly overcome through the use of advertising.

Correct AnswerverifiedShow Answer

A solution to the tragedy of the commons is to convert common resources to public goods.

Correct AnswerverifiedShow Answer

The government can increase economic efficiency by using tax revenue to produce public goods.

Correct AnswerverifiedShow Answer

A rival good is one where:

Correct AnswerverifiedShow Answer

To use a ______ good without paying is typically legal. To use a ______ good without paying is typically illegal.

Correct AnswerverifiedShow Answer

Which of the following is a list of excludable and nonrival goods only?

Correct AnswerverifiedShow Answer

Already, nearly 30% of seafood species have collapsed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedGovernments impose these regulations to ...View AnswerShow Answer

Which of the following statements is FALSE?

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A public roadway is an example of a good that is excludable and nonrival.

Correct AnswerverifiedShow Answer

Which of the following scenarios best describes a tragedy of the commons problem?

Correct AnswerverifiedShow Answer

Although the provision of nonrival private goods is ________, we typically consider it ________.

Correct AnswerverifiedShow Answer

Radio is a:

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The incentive to dedicate private resources to maintaining a common resource is low because:

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Correct AnswerverifiedGiving away the service without charge g...View AnswerShow Answer

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To use a good without paying is typically legal. To use a good without paying is typically illegal.

Correct Answer
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Governments impose these regulations to ...
View Answer

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Although the provision of nonrival private goods is , we typically consider it .

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Correct Answer
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Giving away the service without charge g...
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