A. rival
B. a good produced by a natural monopoly
C. a common resource
D. excludable
Public Goods
A private good is ?
A. rival but not excludable
B. not rival but excludable
C. both rival excludable
D. neither rival nor excludable
A common resource is ?
A. not rival but excludable
B. both rival and excludable
C. rival but not excludable
D. neither rival nor excludable
Suppose each of 20 neighbours on street values street repairs at €3000 the cost of the street repair is €40,000 which of the following statements is true ?
A. it is efficient for the government to tax the resident €2,000 each and repair the road
B. It is efficient for each neighbour to pay €3,000 to repair the section of street in front of his/her home
C. None of these answers are true
D. it is not efficient to have the street repaired
Which of the following is an example of a public good ?
A. hot dogs at a picnic
B. Whales in the ocean
C. national defense
D. apples on a tree in a public park
Suppose that requiring motorcycle riders to wear helmets reduces the probability of a motorcycle fatality from 0.3 percent to 0.2 percent over the lifetime of a motorcycle rider and that the cost of lifetime supply of helmets is Rs5000. It is efficient for the government to require riders to wear helmets if human life is valued at ?
A. Rs 150 or more
B. Rs 500,000 or more
C. Rs50,000 or more
D. Rs500 or more
E. Rs100 or more
When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ?
A. there are no benefits to the public since a public good is not excludable
B. the benefits are infinite because a public good is not rival and an infinite amount of people can consume it at the same time
C. one can never place a value on human life or the environment
D. respondents to naires have little incentive to tell the truth.
The Tragedy of the Commons is a parable that illustrates why?
A. common resources are overconsumed
B. public goods are underproduced
C. private goods are under consumed
D. natural monopolies overproduce goods.
Which of the following are potential solutions to the problem of air pollution?
A. Grant right of the clean air to citizens so that firms must purchase the right to pollute
B. Auctions off pollution permits.
C. Regulate the amount of pollutants that firms can put in the air
D. all of these answers
When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?
A. government regulation
B. that prices are not low enough so firms over produce
C. that prices are not high enough, so people overconsume
D. that property rights have not been well established