Question 1

Use the following to answer question: 
-(Table: Security in a Residential Community) Use Table: Security in a Residential Community.Suppose that the residential community has 100 residents.The marginal cost of hiring the second security guard is _____,and the marginal social benefit is _____.

Accepted Answer

A)  $150;$200
B)  $450;$1,800
C)  $150;$600
D)  $450;$600E) A) and D)
F) B) and D)

Question 2

No individual is willing to pay for the efficient quantity of a public good because the marginal benefit to an individual _____ the marginal social benefit.

Accepted Answer

A)  equals
B)  exceeds
C)  is less than
D)  may be equal to or greater thanE) All of the above
F) A) and B)

Question 3

An artificially scarce good is similar to a public good in that it is _____,but it is also similar to a private good in that it is _____.

Accepted Answer

A)  nonrival in consumption;nonexcludable
B)  nonrival in consumption;excludable
C)  excludable;nonrival in consumption
D)  nonexcludable;rival in consumptionE) B) and C)
F) All of the above

Question 4

Use the following to answer question: 
-(Table: Total Cost and Total Individual Benefit) Use Table: Total Cost and Total Individual Benefit.If an individual resident were to decide about hiring and paying for animal control officers on his or her own,how many officers would that resident hire?

Accepted Answer

A)  0
B)  1
C)  3
D)  5E) B) and C)
F) A) and C)

Question 5

If a good is subject to the free-rider problem and an inefficiently low level of production when left to the private market,the good must be a(n) :

Accepted Answer

A)  private good.
B)  public good.
C)  illegal good
D)  artificially scarce good.E) A) and D)
F) B) and C)

Question 6

A private good is a good or service for which exclusion is _____ and that is _____ in consumption.

Accepted Answer

A)  possible;rival
B)  possible;nonrival
C)  not possible;rival
D)  not possible;nonrivalE) B) and C)
F) B) and D)

Question 7

An inefficient allocation of resources will occur when:

Accepted Answer

A)  decision makers are faced with the full costs and benefits of their actions.
B)  there are clearly defined property rights.
C)  no alternative would increase the welfare of society.
D)  decision makers are not faced with the full benefits and costs of their choices.E) A) and B)
F) A) and C)

Question 8

Which good is MOST likely an artificially scarce good?

Accepted Answer

A)  a ticket to a boxing match
B)  pay-per-view of a boxing match
C)  health care
D)  the police departmentE) B) and D)
F) All of the above

Exam 17: Public Goods and Common Resources

An inefficient allocation of resources will occur when:

Correct Answer
verified

No individual is willing to pay for the efficient quantity of a public good because the marginal benefit to an individual _____ the marginal social benefit.

Correct Answer
verified

Which good is MOST likely an artificially scarce good?

Correct Answer
verified

Use the following to answer question: -(Table: Security in a Residential Community) Use Table: Security in a Residential Community.Suppose that the residential community has 100 residents.The marginal cost of hiring the second security guard is _,and the marginal social benefit is _.

Correct Answer
verified

An artificially scarce good is similar to a public good in that it is _,but it is also similar to a private good in that it is _.

Correct Answer
verified

If a good is subject to the free-rider problem and an inefficiently low level of production when left to the private market,the good must be a(n) :

Correct Answer
verified

Use the following to answer question: -(Table: Total Cost and Total Individual Benefit) Use Table: Total Cost and Total Individual Benefit.If an individual resident were to decide about hiring and paying for animal control officers on his or her own,how many officers would that resident hire?

Correct Answer
verified

A private good is a good or service for which exclusion is _ and that is _ in consumption.

Correct Answer
verified

Exam 17: Public Goods and Common Resources

An inefficient allocation of resources will occur when:

Correct AnswerverifiedShow Answer

No individual is willing to pay for the efficient quantity of a public good because the marginal benefit to an individual _____ the marginal social benefit.

Correct AnswerverifiedShow Answer

Which good is MOST likely an artificially scarce good?

Correct AnswerverifiedShow Answer

Use the following to answer question: -(Table: Security in a Residential Community) Use Table: Security in a Residential Community.Suppose that the residential community has 100 residents.The marginal cost of hiring the second security guard is _____,and the marginal social benefit is _____.

Correct AnswerverifiedShow Answer

An artificially scarce good is similar to a public good in that it is _____,but it is also similar to a private good in that it is _____.

Correct AnswerverifiedShow Answer

If a good is subject to the free-rider problem and an inefficiently low level of production when left to the private market,the good must be a(n) :

Correct AnswerverifiedShow Answer

Use the following to answer question: -(Table: Total Cost and Total Individual Benefit) Use Table: Total Cost and Total Individual Benefit.If an individual resident were to decide about hiring and paying for animal control officers on his or her own,how many officers would that resident hire?

Correct AnswerverifiedShow Answer

A private good is a good or service for which exclusion is _____ and that is _____ in consumption.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Use the following to answer question: -(Table: Security in a Residential Community) Use Table: Security in a Residential Community.Suppose that the residential community has 100 residents.The marginal cost of hiring the second security guard is _,and the marginal social benefit is _.

Correct Answer
verified

An artificially scarce good is similar to a public good in that it is _,but it is also similar to a private good in that it is _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A private good is a good or service for which exclusion is _ and that is _ in consumption.

Correct Answer
verified