Question 1

Tragedy of the commons problems are harder to solve when:

Accepted Answer

A)   people who have access to the common good cannot be identified.
B)   people who have access to the common good are closely related.
C)   a lot of unrelated people have access to the common good.
D)   only a few unrelated people have access to the common good.

Question 2

Some animals are going extinct because of a lack of property rights over these animals.

Accepted Answer

A) True 
 B)False

Question 3

Free riders are people who:

Accepted Answer

A)   enjoy public goods without paying for them.
B)   pay for public goods but do not end up enjoying them.
C)   pay for both private and public goods.
D)   ride public transportation without paying.

Question 4

The O'Reilly Factor is a popular cable television news show. To watch the show requires a paid subscription. Therefore, which of the following is TRUE?

Accepted Answer

A)   This show is a nonrival private good because 1)  nonpayers can be excluded and 2)  when one person watches it does not diminish another person's ability to watch.
B)   This show is a public good because payers and nonpayers alike are watching a rival show.
C)   This show is a public good because 1)  no one can be excluded and 2)  when one person watches it does not diminish another person's ability to watch.
D)   This show is a common good because 1)  nonpayers can be excluded and 2)  when one person watches it does not diminish another person's ability to watch.

Question 5

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.

Accepted Answer

A)   II only
B)   I and II only
C)   I and III only
D)   I, II, and III

Question 6

Common resources are not individually owned, which creates the incentive for their overuse and overconsumption.

Accepted Answer

A) True 
 B)False

Question 7

Digital music is an example of a:

Accepted Answer

A)   private good
B)   public good.
C)   common resource.
D)   nonrival private good.

Question 8

Hamburgers are example of goods that are:

Accepted Answer

A)   rival and excludable.
B)   rival and nonexcludable.
C)   nonrival and excludable.
D)   nonrival and nonexcludable.

Question 9

A jump rope is a:

Accepted Answer

A)   rival good.
B)   public good.
C)   common good.
D)   nonrival good.

Question 10

Common resources are goods that are:

Accepted Answer

A)   excludable and rival.
B)   excludable but nonrival.
C)   nonexcludable but rival.
D)   nonexcludable and nonrival.

Question 11

List and describe the three methods that are used to minimize the tragedy of the commons and achieve an efficient use of a common resource.

Accepted Answer

(1) property rights: The tragedy of over...

Question 12

Which of the following goods best exemplifies a nonrival good?

Accepted Answer

A)   a bottle of water
B)   the Internet
C)   an automobile
D)   your apartment

Question 13

Which of the following has been the most typical way to solve tragedy of the commons problems?

Accepted Answer

A)   government command and control solutions, like limiting the number of fishing boats
B)   government command and constraint solutions, like prohibiting any attempt to fish common areas
C)   tradable allowances which make fish a tradable market
D)   tradable allowances which result in "capital stuffing"

Question 14

The use of advertising makes it possible for the market to produce some public goods.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following does NOT make the tragedy of commons for tuna even worse?

Accepted Answer

A)   Multiple countries tag and track tuna throughout the Pacific.
B)   Many fishermen are involved in fishing tuna.
C)   Governments subsidize fishing extensively.
D)   Demand for tuna has decreased significantly.

Question 16

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.

Question 17

Use the following to answer questions: Table: GoodsClassification
Shirt
Rainfall
Smog Reduction
PlayStation Controller
Cable TV
National Defense
Baltimore Aquarium
Chewing Gum
Your Economics Textbook
Free Public Library
Your Teacher's Open Office Hours
Pen
Free Public Bus Service
-Describe the difference between each of the following three pairs of goods or services according to whether they are excludable or nonexcludable and rival or nonrival. $\begin{array}{|l|l|}
\hline \text { a. } & \text { a city police department and a commercial security system } \
\hline \text { b. } & \text { movies on } \mathrm{HBO} \text { and movies on PBS (Public Broadcasting Service) } \
\hline \text { c. } & \text { fish in the ocean and fish in a fish farm }\\hline
\end{array}$

Accepted Answer

a. A city police department is nonexclud...

Question 18

State highways are an example of a:

Accepted Answer

A)   private good.
B)   public good.
C)   common resource.
D)   nonrival private good.

Question 19

If you give a firm $1,000 to protect the earth from asteroids:

Accepted Answer

A)   your contribution will not have an effect on whether the firm will be successful in protecting the earth.
B)   your contribution will be vital in determining whether the firm will have enough resources to combat asteroids.
C)   your family will now have adequate protection.
D)   you are considered a free-rider of public goods.

Question 20

Private goods:
I. are excludable.
II. can be priced.
III. are rival in consumption.

Accepted Answer

A)   I only
B)   II only
C)   I and III only
D)   I, II, and III

Exam 19: Public Goods and the Tragedy of the Commons

Correct Answer
verified
a. A city police department is nonexclud...
View Answer

Some animals are going extinct because of a lack of property rights over these animals.

Correct Answer
verified

Tragedy of the commons problems are harder to solve when:

Correct Answer
verified

Private goods: I. are excludable. II. can be priced. III. are rival in consumption.

Correct Answer
verified

The use of advertising makes it possible for the market to produce some public goods.

Correct Answer
verified

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.

Correct Answer
verified

Common resources are goods that are:

Correct Answer
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Free riders are people who:

Correct Answer
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Which of the following has been the most typical way to solve tragedy of the commons problems?

Correct Answer
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Which of the following statements is FALSE?

Correct Answer
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If you give a firm $1,000 to protect the earth from asteroids:

Correct Answer
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A jump rope is a:

Correct Answer
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State highways are an example of a:

Correct Answer
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Hamburgers are example of goods that are:

Correct Answer
verified

The O'Reilly Factor is a popular cable television news show. To watch the show requires a paid subscription. Therefore, which of the following is TRUE?

Correct Answer
verified

Common resources are not individually owned, which creates the incentive for their overuse and overconsumption.

Correct Answer
verified

List and describe the three methods that are used to minimize the tragedy of the commons and achieve an efficient use of a common resource.

Correct Answer
verified
(1) property rights: The tragedy of over...
View Answer

Digital music is an example of a:

Correct Answer
verified

Which of the following goods best exemplifies a nonrival good?

Correct Answer
verified

Which of the following does NOT make the tragedy of commons for tuna even worse?

Correct Answer
verified

Exam 19: Public Goods and the Tragedy of the Commons

Correct Answerverifieda. A city police department is nonexclud...View AnswerShow Answer

Some animals are going extinct because of a lack of property rights over these animals.

Correct AnswerverifiedShow Answer

Tragedy of the commons problems are harder to solve when:

Correct AnswerverifiedShow Answer

Private goods: I. are excludable. II. can be priced. III. are rival in consumption.

Correct AnswerverifiedShow Answer

The use of advertising makes it possible for the market to produce some public goods.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Common resources are goods that are:

Correct AnswerverifiedShow Answer

Free riders are people who:

Correct AnswerverifiedShow Answer

Which of the following has been the most typical way to solve tragedy of the commons problems?

Correct AnswerverifiedShow Answer

Which of the following statements is FALSE?

Correct AnswerverifiedShow Answer

If you give a firm $1,000 to protect the earth from asteroids:

Correct AnswerverifiedShow Answer

A jump rope is a:

Correct AnswerverifiedShow Answer

State highways are an example of a:

Correct AnswerverifiedShow Answer

Hamburgers are example of goods that are:

Correct AnswerverifiedShow Answer

The O'Reilly Factor is a popular cable television news show. To watch the show requires a paid subscription. Therefore, which of the following is TRUE?

Correct AnswerverifiedShow Answer

Common resources are not individually owned, which creates the incentive for their overuse and overconsumption.

Correct AnswerverifiedShow Answer

List and describe the three methods that are used to minimize the tragedy of the commons and achieve an efficient use of a common resource.

Correct Answerverified(1) property rights: The tragedy of over...View AnswerShow Answer

Digital music is an example of a:

Correct AnswerverifiedShow Answer

Which of the following goods best exemplifies a nonrival good?

Correct AnswerverifiedShow Answer

Which of the following does NOT make the tragedy of commons for tuna even worse?

Correct AnswerverifiedShow Answer

Correct Answer
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a. A city police department is nonexclud...
View Answer

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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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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Correct Answer
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Correct Answer
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(1) property rights: The tragedy of over...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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