Question 1

A television signal is an example of a good that is
A)private.
B)nonrival in consumption.
C)social.
D)nonexcludable in production.

Accepted Answer

A television signal is nonrival in consumption, meaning that its use by one person does not diminish its availability for others to use. While it may be private in the sense that only paying subscribers have access to certain programming, it is not nonexcludable in production as it requires infrastructure and equipment to produce and distribute the signal. It may have social implications in terms of its impact on culture and society, but this does not make it a social good.

Question 2

Some goods can be either common resources or public goods depending on
A)whether the good is rival in consumption.
B)whether the good is excludable.
C)the marginal cost of the good.
D)None of the above is correct.

Accepted Answer

Whether a good is a common resource or a public good depends on whether it is rivalrous in consumption. Common resources are rivalrous, meaning that one person's use of the resource diminishes its availability for others. Public goods are non-rivalrous, meaning that one person's use of the good does not diminish its availability for others. The excludability of the good and the marginal cost are important considerations as well, but they do not determine whether a good is a common resource or a public good.

Question 3

Goods that are not excludable are usually
A)higher priced than excludable goods.
B)higher priced than rival goods.
C)in short supply.
D)free of charge.

Accepted Answer

Goods that are not excludable are usually free of charge, meaning anyone can enjoy them without having to pay. Examples include fireworks displays, street performances, and national parks.

Question 4

When a good is rival in consumption,
A)one person's use of the good diminishes another person's ability to use it.
B)people can be prevented from using the good.
C)no more than one person can use the good at the same time.
D)everyone will be excluded from obtaining the good.

Accepted Answer

When a good is rival in consumption, it means that the use of the good by one individual diminishes the ability of another individual to use it. For example, a slice of pizza or a parking spot can only be used by one person at a time, and the use of it by one person reduces the amount available for others to use.

Question 5

Bill owns 3 acres of beautiful wooded land.He has created a short walking trail through the woods.Because the terrain is hilly,the only safe entrance to the trail is at the front of Bill's property.When Bill decides to move to be closer to his grandchildren,he donates the land to the state with the understanding that the land will be used as a state park.Because the trail is short,only about 50 people can comfortably enjoy it.This state park is an example of a good that is
A)both rival in consumption and excludable.
B)neither rival in consumption nor excludable.
C)nonrival in consumption and excludable.
D)rival in consumption and nonexcludable.

Accepted Answer

The answer of Bill owns 3 acres of beautiful wooded...

Question 6

Goods that are not rival in consumption include both
A)private goods and common resources.
B)natural monopolies and public goods.
C)common resources and public goods.
D)private goods and natural monopolies.

Accepted Answer

The answer of Goods that are not rival in consumption...

Question 7

Goods that are excludable include both
A)natural monopolies and public goods.
B)public goods and common resources.
C)common resources and private goods.
D)private goods and natural monopolies.

Accepted Answer

Private goods are excludable, meaning that access can be restricted to those who have paid for it. Natural monopolies, public goods, and common resources are non-excludable.

Question 8

A good is excludable if
A)one person's use of the good diminishes another person's enjoyment of it.
B)the government can regulate its availability.
C)it is not a normal good.
D)people can be prevented from using it.

Accepted Answer

A good is excludable if people can be prevented from using it.

Question 9

If one person's use of a good diminishes another person's enjoyment of it,the good is
A)rival in consumption.
B)excludable.
C)normal.
D)exhaustible.

Accepted Answer

A rival in consumption good is one where the consumption of one person diminishes the availability or enjoyment of it for another person. Therefore, if one person's use of a good diminishes another person's enjoyment of it, the good is rival in consumption.

Question 10

If a road is congested,then use of that road by an additional person would lead to a
A)negative externality.
B)positive externality.
C)Pigovian externality.
D)free-rider problem with rush hour drivers stuck in traffic.

Accepted Answer

When a road is congested, adding an additional person to the road increases the travel time and reduces the overall speed of all other vehicles on the road, thus creating a negative externality. This is because the extra person's actions impose an uncompensated cost on other road users.

Question 11

When a good is excludable,
A)one person's use of the good diminishes another person's ability to use it.
B)people can be prevented from using the good.
C)no more than one person can use the good at the same time.
D)everyone will be excluded from using the good.

Accepted Answer

A good that is excludable means that it is possible to prevent someone from using it. This could be through physical barriers or legal ownership. Therefore, choice B is the correct answer. Choice A is more applicable to rival goods, while choice C and D do not accurately reflect the definition of excludability.

Question 12

A view of a spectacular sunset along a private beach is an example of a
A)private good.
B)public good.
C)nonrival but excludable good.
D)rival but nonexcludable good.

Accepted Answer

A view of a spectacular sunset along a private beach can only be experienced by one person at a time (nonrival), but it can be restricted to a certain group of people (excludable) who have access to the private beach. Therefore, it is a nonrival but excludable good (C).

Question 13

Goods that are rival in consumption include both
A)natural monopolies and public goods.
B)public goods and common resources.
C)common resources and private goods.
D)private goods and natural monopolies.

Accepted Answer

The answer of Goods that are rival in consumption include...

Question 14

Both public goods and common resources are
A)rival in consumption.
B)nonrival in consumption.
C)excludable.
D)nonexcludable.

Accepted Answer

Both public goods and common resources are nonexcludable, meaning that it is difficult or impossible to prevent someone from using or benefiting from them. However, public goods are nonrival in consumption (meaning one person's use does not diminish another's), while common resources are rival in consumption (meaning one person's use reduces the amount available for others). Therefore, B and C are incorrect.

Question 15

Excludability is the property of a good whereby
A)one person's use diminishes other people's use.
B)a person can be prevented from using it.
C)a good is private, not public.
D)a good is public, not private.

Accepted Answer

Excludability means that someone can be prevented from using the good. If a good is excludable, then it is possible to restrict access to it, either through pricing or physical barriers. This is in contrast to a public good, which is non-excludable and available for anyone to use. Therefore, choice B is the correct answer.

Question 16

When something of value has no price attached to it,
A)externalities will be present.
B)the product cannot be produced at any price.
C)a natural monopoly will eventually produce the product, and the good will no longer be free.
D)private companies will eventually produce the product, and the good will no longer be free.

Accepted Answer

When a good or service of value has no price attached to it, it is called a "free" good. This often leads to the presence of externalities, which are costs or benefits incurred by a third party that are not reflected in the market price. For example, a park may be free to use, but the cost of maintaining it is not reflected in the price of visiting the park. This can lead to overcrowding, littering, and other negative externalities that are not accounted for.

Question 17

Goods that are rival in consumption but not excludable would be considered
A)natural monopolies.
B)common resources.
C)public goods.
D)private goods.

Accepted Answer

Common resources are goods that are rival in consumption, meaning that one person's use of the resource reduces the amount available for others, but are not excludable, meaning that it is difficult or impossible to prevent others from using the resource. Examples of common resources include fisheries, forests, and clean air.

Question 18

For most goods in an economy,the signal that guides the decisions of buyers and sellers is
A)greed.
B)consumer surplus.
C)prices.
D)profits.

Accepted Answer

Prices are the signal that guides the decisions of buyers and sellers in most goods in an economy. Prices reflect the relative scarcity and demand for a good or service, and they provide information to both buyers and sellers about the best use of resources and opportunities for profit. While greed, consumer surplus, and profits may influence decisions to some extent, they are not as fundamental or pervasive as prices in guiding economic activity.

Question 19

When goods do not have a price,which of the following primarily ensures that the good is produced?
A)entrepreneurs
B)the government
C)charities
D)the market

Accepted Answer

The government often ensures the production of goods that do not have a price, such as public goods like national defense or public parks, because the market may not provide them efficiently due to their non-excludable and non-rivalrous nature.

Question 20

Goods that are not excludable include both
A)private goods and public goods.
B)natural monopolies and common resources.
C)common resources and public goods.
D)private goods and natural monopolies.

Accepted Answer

Common resources and public goods are both examples of goods that are not excludable. Common resources are goods like clean air and water that are available to everyone and cannot be owned or controlled by anyone. Public goods are goods like parks and national defense that are available to everyone and are usually provided by the government. They are not excludable because it is impossible to prevent anyone from enjoying their benefits, regardless of whether or not they have paid for them. Private goods are excludable because it is possible to prevent people who have not paid for them from consuming them. Natural monopolies are excludable because they are usually owned or controlled by a single entity that can prevent others from accessing them.

Quiz 11: Public Goods and Common Resources

A television signal is an example of a good that is

Some goods can be either common resources or public goods depending on

Goods that are not excludable are usually

When a good is rival in consumption,

Goods that are not rival in consumption include both

Goods that are excludable include both

A good is excludable if

If one person's use of a good diminishes another person's enjoyment of it,the good is

If a road is congested,then use of that road by an additional person would lead to a

When a good is excludable,

A view of a spectacular sunset along a private beach is an example of a

Goods that are rival in consumption include both

Both public goods and common resources are

Excludability is the property of a good whereby

When something of value has no price attached to it,

Goods that are rival in consumption but not excludable would be considered

For most goods in an economy,the signal that guides the decisions of buyers and sellers is

When goods do not have a price,which of the following primarily ensures that the good is produced?

Goods that are not excludable include both