Question : 31) The basic cause of deadweight losses from the existence : 1387511

31) The basic cause of deadweight losses from the existence of common resources and externalities is

A) a lack of clearly defined and enforceable property rights.

B) the self-interested rationality of human beings.

C) the use of a market system to deal with scarcity.

D) the absence of government intervention.

32) Global warming refers to the effect of global pollutants such as carbon dioxide on climates on the earth. Climate-induced changes in temperatures affect, among other things, agriculture. Which of the following is a reason why policymakers are still debating if this problem should be addressed and how it should be addressed?

A) Scientists agree about the damage caused by carbon emissions but disagree about the methods of reducing emissions.

B) The marginal cost of reducing carbon emissions is known with certainly, but the marginal benefit from reduction is not known with certainty.

C) The marginal cost of reducing carbon emissions is not known with certainly, but the marginal benefit from reduction is known with certainty.

D) There is much disagreement about all aspects of the problem: how much carbon emissions contribute to damage from climate change, which in turn informs the benefits from reduction, and what methods to use which in turn determines the cost of reduction.

33) Public goods are distinguished by two primary characteristics. What are they?

A) nonrivalry and nonexcludability

B) government intervention and low prices

C) market failure and high prices

D) rivalry and exclusivity

34) Goods can be classified on the basis of whether their consumption is

A) internal and excludable.

B) rival and competitive.

C) includable and cooperative.

D) rival and excludable.

35) Classifying a good as excludable means

A) that someone can be barred from consuming the good based on race, creed or some other irrelevant characteristic.

B) that anyone who does not pay for the good cannot consume it.

C) that consumption of the good causes no externalities.

D) that a producer with patent or copyright protection can exclude any other producer from selling his product.

36) Classifying a good as rival means

A) that the good is produced in a competitive market.

B) that there is a shortage of the good.

C) that when one person consumes a unit of the good no one else can consume it.

D) that anyone who does not pay for the good cannot consume it.

37) A private good is

A) a good that is rival and nonexcludable.

B) a good that is nonrival and nonexcludable.

C) a good that is rival and excludable.

D) a good that is nonrival and excludable.

38) A public good is

A) a good that is rival and excludable.

B) good that is nonrival and nonexcludable.

C) a good that is nonrival and excludable.

D) a good that is rival and nonexcludable.

39) All of the following are examples of public goods except

A) broadcast television with commercials.

B) clean water systems.

C) stock of knowledge in the public domain.

D) crime prevention.

40) Which of the following is an example of a nonexcludable product?

A) college education

B) a public library

C) public transportation

D) Internet service for your home computer