1. Because public goods are a. excludable, people have an incentive to be free r
ID: 1098739 • Letter: 1
Question
1.
Because public goods are
a. excludable, people have an incentive to be free riders.
b. excludable, people do not have an incentive to be free riders.
c. not excludable, people do not have an incentive to be free riders.
d. not excludable, people have an incentive to be free riders.
2.
The provision of a public good generates a
a. negative 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 and the use of a common resource generates a positive externality.
d. positive externality, as does the use of a common resource.
3.
When goods are available free of charge, the market forces that normally allocate resources in our economy are absent.
a. true
b. false
4.
Refer to Figure 11-1. Which of the following items is not a clear-cut example of the type of good represented by Box A?
a. a pair of pants
b. a lighthouse
c. a bicycle
d. a cattle ranch
5.
Pollution is a
a. problem that cannot be remedied with regulations or corrective taxes.
b. problem that is entirely unrelated to the parable called the Tragedy of the Commons.
c. negative externality that can be viewed as a common-resource problem.
d. negative externality that can be viewed as a public-goods problem.
6.
A city street is
a. a public good when it is congested, but it is a common resource when it is not congested.
b. a common resource when it is congested, but it is a public good when it is not congested.
c. always a public good, whether or not it is congested.
d. always a common resource, whether or not it is congested.
7.
A textbook is a
a. common resource and the knowledge that one gains from reading the book is a public good.
b. private good and the knowledge that one gains from reading the book is a public good.
c. common resource and the knowledge that one gains from reading the book is a private good.
d. private good and the knowledge that one gains from reading the book is a common resource.
8.
Mitch hunts deer. His shotgun is
a. a private good and the deer he hunts are public goods.
b. a private good and the deer he hunts are common resources.
c. not rival in consumption and the deer he hunts are not rival in consumption.
d. rival in consumption and the deer he hunts are not rival in consumption.
9.
Rival in Consumption? Yes No Excludable? Yes A B No C DExplanation / Answer
1.ans:
c. not excludable, people do not have an incentive to be free riders.
2).ans:
d. positive externality, as does the use of a common resource.
3).ans:
b. false
4).ans:
c. a bicycle
5).ans:
c. negative externality that can be viewed as a common-resource problem.
6).ans:
c. always a public good, whether or not it is congested.
7).ans:
c. common resource and the knowledge that one gains from reading the book is a private good.
8).ans:
d. rival in consumption and the deer he hunts are not rival in consumption.
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