Public Goods And Common Resources

8 Questions

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  • 1. 
    The property of a good whereby a person can be prevented from using it when they don't pay for it.
    • A. 

      Rivalry

    • B. 

      Natural Monopoly

    • C. 

      Excludibility

    • D. 

      Externality

  • 2. 
    The property of a good whereby one person's use diminshes other people's use.
    • A. 

      Excludibility

    • B. 

      Externality

    • C. 

      Rivalry

    • D. 

      Natural Monopoly

  • 3. 
    A public good is
    • A. 

      Excludable and rival

    • B. 

      Neither excludable nor rival

    • C. 

      Rival but not excludable

    • D. 

      Excludable but not rival

  • 4. 
    A common resource is
    • A. 

      Excludable and rival

    • B. 

      Neither ecludable nor rival

    • C. 

      Rival but not excludable

    • D. 

      Excludable but not rival

  • 5. 
    Study that compares the costs and benefits to society of providing public goods
    • A. 

      Empirical Test

    • B. 

      Cost-Benefit Analysis

    • C. 

      Correlational Study

    • D. 

      Experiment

  • 6. 
    Why does the government provide public goods?
    • A. 

      Private market will not produce efficient quantity

    • B. 

      Private market will produce efficient quantity

  • 7. 
    Parable that illustrates why common resources get used more than is desirable from the standpoint of society as a whole.
    • A. 

      Natural Monopoly

    • B. 

      Tragedy of the Commons

    • C. 

      Externality

    • D. 

      Free Rider Problem

  • 8. 
    A free rider is a person who receives the benefit of a good but avoids paying for it
    • A. 

      True

    • B. 

      False