Question 1

Josh has an iPhone,and he frequently downloads songs from iTunes.He pays a small price for each download,but downloading a song does not remove it from the iTunes inventory,which is available for other buyers.The iTunes service is BEST described as a(n):

Accepted Answer

The fact that downloading a song does not remove it from the iTunes inventory means that the good is not rivalrous, but it is artificially scarce as it is made available for purchase only through the iTunes platform. Therefore, the best description for the iTunes service is an artificially scarce good.

Question 2

DeVonda owns a music store.One night,vandals broke her store's front window.DeVonda called the police,and the police investigated the crime.The police services that DeVonda used are BEST described as a(n):

Accepted Answer

The police service provided by the government to investigate the crime and maintain law and order is a public good as it can be consumed by one individual without reducing its availability to others. It is non-excludable and non-rivalrous.

Question 3

As a big music fan,you want to attend a weekend blues festival in your town.The purchase of a wristband gives you and thousands of other fans access to the very large outdoor concert pavilion,where you all fit comfortably.The blues festival is a good that has the characteristics of being:

Accepted Answer

The blues festival is nonrival because one person's enjoyment of the music does not diminish another's ability to enjoy it as well. It is excludable because only those who purchase a wristband can access the event.

Question 4

The BEST example of an artificially scarce good is:

Accepted Answer

Cable television programming is an artificially scarce good because cable companies limit access to certain channels or programs, creating scarcity and allowing them to charge customers a premium for access to those programs. Unlike natural scarcity, where a good is limited by physical resources or production capabilities, artificial scarcity is intentionally created to increase demand and profit.

Question 5

If the market produces an efficient level of a good,then we know that the good must be _____ and _____ in consumption.

Accepted Answer

An efficient level of a good in the market typically implies that the good is excludable and rival in consumption. Excludable means that people can be prevented from using the good unless they pay for it, and rival means that one person's use of the good diminishes the ability of another person to use it. These characteristics help ensure that the market can effectively allocate resources and charge prices that reflect the cost of production and the value to consumers.

Question 6

Which example is considered a private good?

Accepted Answer

A private good is a product or service that can only be consumed by one person or a restricted group of people. A fast-food cheeseburger is an example because it can only be consumed by one person and is not easily shared with others.

Question 7

National defense and clean air are similar in that both are _____,but they differ in that clean air is _____,while national defense is not.

Accepted Answer

The answer of National defense and clean air are similar...

Question 8

The BEST example of a public good is:

Accepted Answer

National defense is the best example of a public good because it is non-excludable (everyone benefits from it regardless of whether they pay for it or not) and non-rivalrous (one person's consumption of national defense does not reduce the amount available to others). Legal services, a municipal library, and cable television programming are not examples of public goods as they are either excludable or rivalrous or both.

Question 9

If a good has a marginal cost of production of zero and an inefficiently low level of consumption,the good must be a(n):

Accepted Answer

The answer of If a good has a marginal cost...

Question 10

An electronic book is an artificially scarce good because the private market _____ prevent consumption by people who do not pay for it.Further,the same e-book _____ be consumed by more than one person at the same time.

Accepted Answer

The correct answer is A because an electronic book is an artificially scarce good because the private market can prevent consumption by people who do not pay for it. Further, the same e-book can be consumed by more than one person at the same time.

Question 11

Public goods differ from common resources in that,while both are _____,public goods are _____,while common resources are _____.

Accepted Answer

Public goods are nonexcludable and nonrival in consumption, meaning they can be used by everyone without diminishing their availability to others. Common resources are nonexcludable but rival in consumption, meaning their use by one person can reduce their availability to others.

Question 12

Stephanie stops at a gas station to fill up the tank of her car.The unleaded gasoline in her tank is BEST described as a(n):

Accepted Answer

Unleaded gasoline is a private good because it can be excluded from those who do not pay for it and its consumption by one person reduces the amount available for others.

Question 13

Although most citizens have access to police protection,they also take measures,such as putting locks on their doors,to protect themselves.For most citizens,police protection is a(n)_____ good,while self-protection is a(n)_____ good.

Accepted Answer

Police protection is a public good as it is provided by the government and is non-excludable, meaning that people cannot be excluded from using it. Self-protection, on the other hand, is a private good as individuals have to take measures to protect themselves, such as installing locks on their doors, which are excludable and can only be used by the person who put them there.

Question 14

Fish in a public lake are common resources because the private market _____ prevent consumption by people who do not pay for access to fish.Further,the same fish _____ be consumed more than once.

Accepted Answer

The private market cannot prevent consumption by people who do not pay for access to fish in a public lake, making fish a common resource. Additionally, the same fish cannot be consumed more than once, as once a fish is caught and consumed, it is no longer available to others.

Question 15

Bluefin tuna travel in schools throughout the world's oceans.Fishing boats from many nations harvest bluefin tuna as the schools migrate through their national waters.The schools of bluefin tuna are BEST described as a(n):

Accepted Answer

The fact that bluefin tuna are harvested by fishing boats from many nations indicates that they are a common resource, meaning they are accessible and usable by anyone. Additionally, the fact that their populations can be depleted through overfishing suggests that they are a finite resource that requires management and conservation efforts.

Question 16

National defense and e-books are similar in that both are _____,but they differ in that national defense is _____,while e-books are _____.

Accepted Answer

National defense and e-books are both nonrival in consumption because their use by one person does not diminish the opportunity for another person to use them. However, national defense is nonexcludable because it is difficult to prevent non-payers from benefiting from it, while e-books are excludable because access to them can be restricted to paying customers through digital rights management (DRM) or similar technologies. Therefore, option B is the correct answer.

Question 17

The BEST example of a common resource(s)is/are:

Accepted Answer

Fish in a local public lake are a common resource as they are available for anyone to catch. However, if too many people catch fish without regulation, it can lead to overfishing and depletion of the resource. This is an example of the tragedy of the commons, where individuals acting in their own self-interest can lead to the depletion of a common resource. Public education, a football match, and cable television programming are not common resources as they are not available for all to use or enjoy without restriction.

Question 18

The BEST example of a good that is excludable in consumption is:

Accepted Answer

A bicycle is a physical item that can be owned and used by one person at a time, making it excludable in consumption. A park and an ocean are both non-excludable goods as they can be used and enjoyed by multiple individuals without depriving others of their use. National defense is also non-excludable as it is provided to all citizens regardless of their willingness or ability to pay for it.

Question 19

An artificially scarce good is similar to a public good in that it is _____,but it is also similar to a private good in that it is _____.

Accepted Answer

An artificially scarce good is a good that is made artificially scarce through a variety of means such as intellectual property rights, exclusive licensing agreements, or other legal restrictions. This makes it similar to a private good in that it is excludable, meaning that access to the good can be restricted or controlled. However, it is also similar to a public good in that it is nonrival in consumption, meaning that the consumption of one individual does not decrease the availability of the good for others. Therefore, the best choice is B, which describes a good that is nonrival in consumption and excludable.

Question 20

When comparing the characteristics of common resources and artificially scarce goods,we find that:

Accepted Answer

Common resources are rival in consumption, meaning that if one person consumes the resource, it is not available for others to use. Examples of common resources include things like fish in the ocean or clean air. Artificially scarce goods, on the other hand, are not rival in consumption. This means that one person's consumption of the good does not limit the availability of the good for others. However, artificially scarce goods are excludable, meaning that it is possible to prevent someone from accessing the good if they do not pay for it. Examples of artificially scarce goods include things like digital music files or patented pharmaceutical drugs.

Quiz 17: Public Goods and Common Resources

Josh has an iPhone,and he frequently downloads songs from iTunes.He pays a small price for each download,but downloading a song does not remove it from the iTunes inventory,which is available for other buyers.The iTunes service is BEST described as a(n) :

DeVonda owns a music store.One night,vandals broke her store's front window.DeVonda called the police,and the police investigated the crime.The police services that DeVonda used are BEST described as a(n) :

As a big music fan,you want to attend a weekend blues festival in your town.The purchase of a wristband gives you and thousands of other fans access to the very large outdoor concert pavilion,where you all fit comfortably.The blues festival is a good that has the characteristics of being:

The BEST example of an artificially scarce good is:

If the market produces an efficient level of a good,then we know that the good must be _ and _ in consumption.

Which example is considered a private good?

National defense and clean air are similar in that both are _,but they differ in that clean air is _,while national defense is not.

The BEST example of a public good is:

If a good has a marginal cost of production of zero and an inefficiently low level of consumption,the good must be a(n) :

An electronic book is an artificially scarce good because the private market _ prevent consumption by people who do not pay for it.Further,the same e-book _ be consumed by more than one person at the same time.

Public goods differ from common resources in that,while both are ___,public goods are _,while common resources are ___.

Stephanie stops at a gas station to fill up the tank of her car.The unleaded gasoline in her tank is BEST described as a(n) :

Although most citizens have access to police protection,they also take measures,such as putting locks on their doors,to protect themselves.For most citizens,police protection is a(n) _ good,while self-protection is a(n) _ good.

Fish in a public lake are common resources because the private market _ prevent consumption by people who do not pay for access to fish.Further,the same fish _ be consumed more than once.

Bluefin tuna travel in schools throughout the world's oceans.Fishing boats from many nations harvest bluefin tuna as the schools migrate through their national waters.The schools of bluefin tuna are BEST described as a(n) :

National defense and e-books are similar in that both are ___,but they differ in that national defense is _,while e-books are ___.

The BEST example of a common resource(s) is/are:

The BEST example of a good that is excludable in consumption is:

An artificially scarce good is similar to a public good in that it is _,but it is also similar to a private good in that it is _.

When comparing the characteristics of common resources and artificially scarce goods,we find that:

Quiz 17: Public Goods and Common Resources

Josh has an iPhone,and he frequently downloads songs from iTunes.He pays a small price for each download,but downloading a song does not remove it from the iTunes inventory,which is available for other buyers.The iTunes service is BEST described as a(n) :

DeVonda owns a music store.One night,vandals broke her store's front window.DeVonda called the police,and the police investigated the crime.The police services that DeVonda used are BEST described as a(n) :

As a big music fan,you want to attend a weekend blues festival in your town.The purchase of a wristband gives you and thousands of other fans access to the very large outdoor concert pavilion,where you all fit comfortably.The blues festival is a good that has the characteristics of being:

The BEST example of an artificially scarce good is:

If the market produces an efficient level of a good,then we know that the good must be _____ and _____ in consumption.

Which example is considered a private good?

National defense and clean air are similar in that both are _____,but they differ in that clean air is _____,while national defense is not.

The BEST example of a public good is:

If a good has a marginal cost of production of zero and an inefficiently low level of consumption,the good must be a(n) :

An electronic book is an artificially scarce good because the private market _____ prevent consumption by people who do not pay for it.Further,the same e-book _____ be consumed by more than one person at the same time.

Public goods differ from common resources in that,while both are _____,public goods are _____,while common resources are _____.

Stephanie stops at a gas station to fill up the tank of her car.The unleaded gasoline in her tank is BEST described as a(n) :

Although most citizens have access to police protection,they also take measures,such as putting locks on their doors,to protect themselves.For most citizens,police protection is a(n) _____ good,while self-protection is a(n) _____ good.

Fish in a public lake are common resources because the private market _____ prevent consumption by people who do not pay for access to fish.Further,the same fish _____ be consumed more than once.

Bluefin tuna travel in schools throughout the world's oceans.Fishing boats from many nations harvest bluefin tuna as the schools migrate through their national waters.The schools of bluefin tuna are BEST described as a(n) :

National defense and e-books are similar in that both are _____,but they differ in that national defense is _____,while e-books are _____.

The BEST example of a common resource(s) is/are:

The BEST example of a good that is excludable in consumption is:

An artificially scarce good is similar to a public good in that it is _____,but it is also similar to a private good in that it is _____.

When comparing the characteristics of common resources and artificially scarce goods,we find that:

If the market produces an efficient level of a good,then we know that the good must be _ and _ in consumption.

National defense and clean air are similar in that both are _,but they differ in that clean air is _,while national defense is not.

An electronic book is an artificially scarce good because the private market _ prevent consumption by people who do not pay for it.Further,the same e-book _ be consumed by more than one person at the same time.

Public goods differ from common resources in that,while both are ___,public goods are _,while common resources are ___.

Although most citizens have access to police protection,they also take measures,such as putting locks on their doors,to protect themselves.For most citizens,police protection is a(n) _ good,while self-protection is a(n) _ good.

Fish in a public lake are common resources because the private market _ prevent consumption by people who do not pay for access to fish.Further,the same fish _ be consumed more than once.

National defense and e-books are similar in that both are ___,but they differ in that national defense is _,while e-books are ___.

An artificially scarce good is similar to a public good in that it is _,but it is also similar to a private good in that it is _.