Question 1

What is an individual transferable quota (ITQ)?

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Question 2

What is the tragedy of the commons?

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Question 3

Why are fish in the ocean an example of a resource that suffers from the tragedy of the commons but cattle grazing in a farmer's pasture do not suffer from the tragedy of the commons?

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Question 4

Protection of rivers in Idaho is a public good.If the marginal cost of protecting rivers in Idaho exceeds the marginal benefit of river protection,is there more than,less than,or the efficient amount of river protection taking place?

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Question 5

-The table above shows the marginal benefit that arises from providing police protection in an economy of two people,Paul and Art.
a.Construct a table of the economy's marginal benefit from providing police protection.
b.What is the economy's marginal benefit from having 3 police cars on duty?

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-The table above shows the marginal benefit...

Question 6

"The principle of increasing marginal cost does not apply to public goods." Is this statement correct or not?

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Question 7

-Ten homeowners live around Lake Alice.Unfortunately,the lake is contaminated with various chemicals and the level of contamination is currently 20 parts per million.All the homeowners benefit equally if the level of contamination is reduced.The table above gives the marginal cost and marginal benefit for removing the contaminants from the lake.
a.What will be the parts per million if the homeowners alone are in charge of reducing the contaminants?
b.What is the efficient amount of contamination?

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-Ten homeowners live around Lake Alice.Unfortunately,the lake...

Question 8

Some resources are private and others are common.Define a common resource,explain the definition,and provide an example of a private resource and a common resource.

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Question 9

Why isn't national defense provided by free markets?

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Question 10

Under what conditions will the political process provide an inefficient amount of a public good?

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Question 11

How is the efficient quantity of public goods determined?

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Question 12

How does the marginal social cost curve of a common resource compare to the marginal private cost curve of the common resource? If there is a difference,why is there a difference? If there is not a difference,why is there not a difference?

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Question 13

What is the free-rider problem? What results from the free-rider problem? What is a solution to the free-rider problem?

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Question 14

-The table above provides information about the marginal cost and marginal benefit of streetlights,which are a public good.
a.What quantity would a private company provide? Why?
b.What is the efficient quantity?

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-The table above provides information about the...

Question 15

"The problem with a common resource is that no one gets to use the resource." Comment on the preceding assertion.

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Question 16

How does the principle of minimum differentiation relate to the free-rider problem?

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Question 17

How does the government determine the quota amount that will produce an efficient use of a common resource?

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Question 18

What is the free-rider problem and with what is it associated?

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Question 19

What is rational ignorance?

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Question 20

Why is watching sports more important to many prospective voters than watching the news? In your answer,mention the role played by rational ignorance and the cost of gathering information.

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Quiz 11: Public Goods and Common Resources