Question : 11.5 Integrative Questions 1) Which of the following can be rival : 1241082

Economics

11.5 Integrative Questions

1) Which of the following can be rival and excludable?

i.a good

ii.a service

iii.a resource

A) i and ii

B) i and iii

C) ii and iii

D) i, ii and iii

E) only i

2) National defense is a ________ because ________.

A) public good; it can be an overused resource

B) public good; it is nonrival and nonexcludable

C) common resource; no one has the incentive to pay for his or her share

D) private good; no one has an incentive to conserve the good

E) common resource; it suffers from the tragedy of the commons

3) Fish in the ocean are an example of ________ because they are ________.

A) public good; nonexcludable and nonrival

B) public good; rival and excludable

C) common resource; rival and nonexcludable

D) common resource; nonrival and nonexcludable

E) private good; caught by private fishermen

4) A natural monopoly, such as the Internet, is

A) nonrival and excludable.

B) rival and excludable.

C) nonrival and nonexcludable.

D) rival and nonexcludable.

E) None of the above answers is correct.

5) The free-rider problem applies

A) to rival and excludable goods.

B) to common resources.

C) to nonrival and nonexcludable goods.

D) when marginal social benefit exceeds marginal private benefit.

E) when marginal social cost equals marginal private cost.

6) The marginal benefit curve of a public good is calculated by ________ individual marginal ________ curves.

A) averaging; cost/benefit

B) horizontally summing; cost

C) averaging; benefit

D) vertically summing; benefit

E) horizontally summing; benefit

7) The reason that private provision of a public good often leads to inefficiency is because

A) private property rights are too costly to enforce.

B) marginal private benefits are too costly to calculate.

C) no one has the incentive to pay for the good.

D) no one has an incentive to conserve the good.

E) the tragedy of the commons occurs and too many public goods are provided.

8) Which of the following is true?

i.A common resource is a resource that is nonrival and nonexcludable.

ii.Issuing individual transferable quotas (ITQ) means that for users of common resources, the marginal cost plus the price of the ITQ equals the marginal social cost.

iii.In an unregulated market, a common resource is used to the point at which marginal private benefit equals marginal cost.

A) only i

B) only ii

C) only iii

D) i and ii

E) ii and iii

9) Ocean fish are considered rival because a fish taken by one person is ________ for anyone else, and they are nonexcludable because it is ________ to prevent people from catching them.

A) not available; difficult

B) not available; easy

C) available; difficult

D) available; easy

E) not available; fair

10) A seat at an N.B.A. Finals game is a ________ good because it is ________ and excludable.

A) natural monopoly; rival

B) public; rival

C) private; rival

D) natural monopoly; nonrival

E) private; nonrival

11) Because fire protection is a ________ good, the free-rider problem is avoided by public provision and financing through ________.

A) public; taxes

B) private; taxes

C) natural monopoly; taxes

D) public; grants

E) public; vouchers

12) For a common resource, such as tuna fish in the ocean, no fisher has a ________ incentive to conserve the resource and use it at an ________ rate.

A) private; inefficient

B) private; efficient

C) public; inefficient

D) public; efficient

E) personal; inefficient

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81) If the marginal cost of producing a television is constant at $200, then a firm should produce this item.

A) only if the marginal benefit it receives is greater than $200 plus an acceptable profit margin.

B) as long as the marginal benefit it receives is just equal to or greater than $200.

C) as long as its marginal cost does not rise.

D) until the marginal benefit it receives reaches zero.

82) Which of the following is an example of a "how much" decision?

A) The Pleasantville movie theatre is open only in the evenings. The theatre's manager is debating whether to add daily matinee shows.

B) The Zhous have demolished their old home and are debating whether to build a ranch-style house or a Craftsman home.

C) You're planning to hold a graduation party and must decide between having your party catered or having a pot-luck.

D) Chelsea has withdrawn from the swim team to take up a full-time job.

83) Which of the following is an example of a "how much" decision?

A) Octavia is debating whether to buy a pair of Jimmy Choo shoes or Steve Madden boots.

B) Humberto has taken a second job to earn money to buy a Harley-Davidson SuperLow Sportster.

C) You plan on going to Las Vegas for your birthday and are deciding if you should fly or drive.

D) Diana is trying to decide if she should open her pet shop on Sundays.

84) Marginal cost is the ________ associated with undertaking an activity.

A) total cost

B) extra cost.

C) opportunity cost.

D) foregone cost.

85) Cassie's Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What is her marginal benefit if she sells the quilt "as is" now?

A) $100

B) $900

C) She makes a marginal loss of $600, not a marginal benefit.

D) The marginal benefit cannot be determined.

86) Cassie's Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What is the marginal cost of completing the task?

A) $200

B) $500

C) $1,000

D) $1,000 plus the value of her time

87) Cassie's Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What should she do?

A) She should cut her losses and sell the quilt now.

B) It does not matter what she does; she is going to take a loss on her project.

C) She should purchase the period fabric, complete the task and then sell the quilt.

D) She should not do anymore work on the quilt because she has already spent too much time on it and has not been paid for that time.

88) Lionel's Lawn Care is a company that maintains residential yards. Lionel's cost for his standard package of mowing, edging, and trimming is $15, and he charges $25 for this service. For a total price of $40, Lionel will also trim shrubs, a service that adds an additional $10 to the total cost of the standard package. What is Lionel's marginal benefit if he sells the standard package?

A) $10

B) $15

C) $25

D) $40

89) Lionel's Lawn Care is a company that maintains residential yards. Lionel's cost for his standard package of mowing, edging, and trimming is $15, and he charges $25 for this service. For a total price of $40, Lionel will also trim shrubs, a service that adds an additional $10 to the total cost of the standard package. What is Lionel's marginal cost of adding the shrub-trimming service to the standard package?

A) $10

B) $15

C) $25

D) $40

90) Lionel's Lawn Care is a company that maintains residential yards. Lionel's cost for his standard package of mowing, edging, and trimming is $15, and he charges $25 for this service. For a total price of $40, Lionel will also trim shrubs, a service that adds an additional $10 to the total cost of the standard package. Should Lionel continue to offer the shrub-trimming service?

A) Yes, his marginal benefit is greater than his marginal cost.

B) Yes, but only if he raises the price of the standard package.

C) No, his marginal benefit is less than his marginal cost.

D) More information is needed for Lionel to make this decision.