61) Economists consider a product such as a university education to be ________, whereas a product such as your local library is generally considered to be ________.
A) non-rivalrous and non-excludable; rivalrous and non-excludable
B) rivalrous and non-excludable; rivalrous and excludable
C) rivalrous and excludable; non-rivalrous and excludable
D) rivalrous and excludable; rivalrous and non-excludable
E) non-rivalrous and excludable; non-rivalrous and excludable
62) Common-property fishing grounds are
A) often underexploited because non-excludability means there is little investment in the resource.
B) always efficiently exploited because fishermen now understand the dangers of over-fishing.
C) often overexploited because individual fishermen have no incentive to leave fish for the "next" fisherman.
D) often overexploited because fishing grounds are rivalrous and excludable.
E) often overexploited because fishermen are concerned with preserving fish stocks for future fishermen.
63) Consider a remote village with a limited, freely available water supply and no government intervention in the allocation of water. In this case, each individual has an incentive to use water until their
A) private marginal benefit is zero.
B) private marginal cost is zero.
C) social marginal benefit is maximized.
D) social marginal cost is minimized.
E) private and social marginal costs are equal.
64) Consider a remote village with a limited, freely available water supply and no government intervention in the allocation of water. Economic theory predicts that the water will be
A) allocated efficiently because users will tend to use the water until marginal cost and marginal benefit are both equal to zero.
B) overexploited because users will tend to use the water until the marginal cost of providing the water is zero.
C) allocated efficiently because users will tend to use the water until the supply and demand are in equilibrium.
D) overexploited because users will tend to use the water until their marginal benefit is zero.
E) allocated efficiently because users will tend to use the water as though it were a public good.
65) Consider a remote village with a limited, freely available water supply and no government intervention in the allocation of water. In economics, the resulting outcome of a situation such as this is often referred to as
A) the Coase theorem.
B) the tragedy of the commons.
C) moral hazard.
D) adverse selection.
E) asymmetric information.
66) A common-property resource is one that is
A) rivalrous and excludable.
B) non-rivalrous and non-excludable.
C) non-rivalrous and excludable.
D) rivalrous and non-excludable.
67) If you consume some good, and by doing so you diminish other people's possible use of that good, we say that the good is
A) rivalrous.
B) excludable.
C) a common resource.
D) not productively efficient.
E) a public good.
68) In economics, the term "public good" refers to a product
A) that only private producers will provide.
B) which consumers cannot be excluded from using.
C) that is produced by a publicly owned corporation.
D) that is widely advertised.
E) that has a very low marginal cost of production.
69) A public good is a product that is
A) produced by the government.
B) excludable but nonrivalrous
C) nonexcludable and nonrivalrous.
D) rivalrous but nonexcludable.
E) excludable and rivalrous.
70) A good example of a product that is both nonexcludable and nonrivalrous is
A) grazing land.
B) public information.
C) electricity.
D) food.
E) natural gas.
