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