Question :
31.Alighthouseistypicallyconsideredtobeapublicgoodbecause
a.theownerofthelighthouseisabletoexcludebeneficiariesfromenjoyingthelighthouse.
b.thereisrarelyanotherlighthousenearbytoprovidecom : 1261431
31.Alighthouseistypicallyconsideredtobeapublicgoodbecause
a.theownerofthelighthouseisabletoexcludebeneficiariesfromenjoyingthelighthouse.
b.thereisrarelyanotherlighthousenearbytoprovidecompetition.
c.anearbyportauthoritycannotavoidpayingfeestothelighthouseowner.
d.allpassingshipsareabletoenjoythebenefitsofthelighthousewithoutpaying.
32.Alighthousemightbeconsideredaprivategoodif
a.thereisasecondlighthousenearby,thuspreventingamonopoly.
b.theownerofthelighthouseisabletoexcludebeneficiariesfromreceivingthebenefitsofthelighthouse.
c.shipsareabletoenjoythebenefitsofthelighthousewithoutpayingforthebenefit.
d.anearbyportauthorityisabletoavoidpayinganyfeestothelighthouseowner.
33.Whichofthefollowingisanexampleofthefree-riderproblem?
a.BothZoeandZachreceivelow-costdentalcareatthelocaldentalschool,soneitherofthempaysthefullcostofthecare.
b.Alfredreceivesafreelunchfromthelocal”MealsonWheels”programbecauseofhislowmonthlyincome.
c.BruceownsBuster,alargedogwhobarkswheneveranyonewalksnearhishouse.BettylivesnexttoBruce,andBuster’sbarkingcanbeheardwheneveranyonewalksnearherhouse,too.Thus,BettyreceivesfreeprotectionfromburglarsbecauseofBuster’sbarking.
d.Sampurchasesaburgeratafastfoodrestaurantandgetsasecondburgerfreebecausetherestaurantishavingabuyone,getonefreesale.
34.Nationaldefenseisaclassicexampleofapublicgoodbecause
a.thereisnomarketforprivatesecurityservices.
b.itisdifficulttoexcludepeoplefromreceivingthebenefitsfromnationaldefenseonceitisprovided.
c.everyoneagreesthatsomelevelofnationaldefenseisimportant,butonlythegovernmentknowstheoptimalamount.
d.therearenoprivatefirmswillingtosupplydefensegoodssuchastanksandweapons.
35.ThenationaldefenseoftheUnitedStatesisnotrivalbecause
a.myenjoymentofthenationaldefensedoesnotdiminishyourenjoymentofthenationaldefenseoftheUnitedStates.
b.myenjoymentofthenationaldefensedoesdiminishyourenjoymentofthenationaldefenseoftheUnitedStates.
c.oncethenationisdefended,itisimpossibletopreventanysinglepersonfromenjoyingthebenefitofthisdefense.
d.oncethenationisdefended,itispossibletopreventanysinglepersonfromenjoyingthebenefitofthisdefense.
36.ThenationaldefenseoftheUnitedStatesisnotexcludablebecause
a.myenjoymentofthenationaldefensedoesnotdiminishyourenjoymentofthenationaldefenseoftheUnitedStates.
b.myenjoymentofthenationaldefensedoesdiminishyourenjoymentofthenationaldefenseoftheUnitedStates.
c.oncethenationisdefended,itisimpossibletopreventanysinglepersonfromenjoyingthebenefitofthisdefense.
d.oncethenationisdefended,itispossibletopreventanysinglepersonfromenjoyingthebenefitofthisdefense.
37.Itiscommonlyarguedthatnationaldefenseisapublicgood.Nevertheless,theweaponsusedbytheU.S.militaryareproducedbyprivatefirms.Wecanconcludethat
a.resourceswouldbeusedmoreefficientlyifthegovernmentproducedtheweapons.
b.resourceswouldbeusedmoreefficientlyifprivatefirmsprovidednationaldefense.
c.weaponsarerivalinconsumptionandexcludable,butnationaldefenseisnotrivalinconsumptionandnotexcludable.
d.nationaldefenseisrivalinconsumptionandexcludable,butweaponsarenotrivalinconsumptionandnotexcludable.
38.Nationaldefenseisprovidedbythegovernmentbecause
a.itisimpossibleforprivatemarketstoproducepublicgoods.
b.productsprovidedbythegovernmentareproducedmoreefficiently.
c.free-ridersmakeitdifficultforprivatemarketstosupplythesociallyoptimalquantity.
d.publicgoodsincreasegovernmentrevenues.
39.Eveneconomistswhoadvocatesmallgovernmentagreethat
a.nationaldefenseisapublicgoodandthatthegovernmentshouldprovideit.
b.nationaldefenseisacommonresourceandthatthegovernmentshouldprovideit.
c.nationaldefenseisapublicgood,butmanyofthembelievethatitshouldbeprovidedbyprivatefirmsratherthanbythegovernment.
d.nationaldefenseisacommonresource,butmanyofthembelievethatitshouldbeprovidedbyprivatefirmsratherthanbythegovernment.
40.Knowledgeisanexampleofa
a.publicgood.
b.privategood.
c.commonresource.
d.clubgood.