Question 1

It is common knowledge that many U.S.national parks have become overused.One possible solution to this problem is to

Accepted Answer

Increasing entrance fees would discourage some visitors from coming to the parks, while also generating more revenue to help manage and maintain the parks. This approach has been successfully implemented in other countries and has shown to be effective in reducing overcrowding and protecting the natural resources of the parks. Decreasing camping permit fees or requiring registration for all visitors may help with managing the crowds but would not generate the necessary funds for park management. Selling the land is not a viable solution as it would lead to the destruction of the parks and their resources.

Question 2

Excessive fishing occurs because

Accepted Answer

Excessive fishing occurs because each individual fisherman has little incentive to maintain the species for the next year. They are often more concerned with catching as many fish as possible in the short term, rather than conserving the population for long-term sustainability. This is because they may not be held accountable for the overall health of the fish population, and may not have long-term agreements or contracts to fish in specific areas.

Question 3

Elephant populations in some African countries have started to rise because

Accepted Answer

The answer of Elephant populations in some African countries have...

Question 4

Because elephants roam freely in many countries in Africa,each individual African elephant poacher has

Accepted Answer

Poachers have a strong incentive to kill elephants because ivory from elephant tusks can fetch high prices on the black market.

Question 5

The U.S.government protects fish,a common resource,by

Accepted Answer

The U.S. government protects fish by selling fishing licenses and regulating fish lengths. This helps to ensure that the fish population is sustainable and not overexploited. Subsidizing the fishing industry or heavily taxing competing industries would not necessarily protect fish populations.

Question 6

Elephants are endangered,but cows are not because

Accepted Answer

Endangerment of a species depends on its status as a common resource or a private good. Common resources, like elephants, are usually not owned by anyone and are accessible to anyone who wants to hunt or use them. Over hunting and excessive use of these resources cause endangerment. On the other hand, cows are usually owned by individuals and are considered as private goods. The owners of cows usually protect them, which reduces the chances of endangerment.

Question 7

Four roommates share an off-campus house and equally share the cost of rent.Everyone says that she values a clean house,yet the house is usually dirty.To an economist,a clean house in this case represents

Accepted Answer

The situation described is a common resource problem, where the cleanliness of the house is under-provided because each individual perceives their own effort to clean as costly and not fully benefiting them. This creates a situation where everyone expects someone else to clean, resulting in a dirty house. While public goods and natural monopolies can present similar collective action problems, they are not applicable in this particular case.

Question 8

Why is the commercial value of ivory a threat to the elephant,while the commercial value of beef is the cow's guardian?

Accepted Answer

The commercial value of ivory is a threat to the elephant because it leads to poaching and illegal killing of elephants for their tusks. Elephants are not a common resource and their population size is declining rapidly due to poaching. On the other hand, the commercial value of beef is not a threat to cows because they are a common resource and their population size is maintained through breeding and farming practices.

Question 9

A variable toll on a road in Washington reached a high during the evening rush hour of $5.75.This toll bought the drivers who paid it a 27 minute time savings.Which of the following is correct?

Accepted Answer

The answer of A variable toll on a road in...

Question 10

Using a toll to reduce traffic when congestion is greatest is an example of a

Accepted Answer

The use of tolls to reduce traffic during peak congestion is an example of a corrective tax. It incentivizes individuals to reduce their use of the road during congested periods by making them pay a fee. It is not a regulation solution because it does not outright prohibit certain behavior or mandate specific actions. It is not a command-and-control policy because it does not rely on strict regulations and enforcement. It is not a Coase theorem solution because it does not involve negotiating property rights between parties to reach an efficient outcome.

Question 11

The ocean remains one of the largest unregulated resources for each of the following reasons except

Accepted Answer

All of the above reasons contribute to why the ocean remains one of the largest unregulated resources. Many countries have access to the ocean, making it a complex issue to regulate. Additionally, international cooperation can be difficult to achieve as countries may prioritize different values and goals. Finally, the sheer size of the ocean makes enforcing any agreements or regulations challenging.

Question 12

One of the least regulated common resources today is

Accepted Answer

The ocean is one of the least regulated common resources due to its vast size and global nature, making it difficult to enforce regulations and manage resources effectively. Maritime law exists but is often difficult to enforce, leading to issues such as overfishing and pollution. State parks, forest preserves, and the Great Lakes have more stringent regulations in place for their management and protection.

Question 13

Many species of animals are common resources,and many must be protected by law to keep them from extinction.Why is the cow not one of these endangered species even though there is such a high demand for beef?

Accepted Answer

The answer of Many species of animals are common resources,and...

Question 14

Which of the following statements is true of the tax on gasoline?

Accepted Answer

The tax on gasoline is intended to discourage driving and reduce the negative externalities associated with driving, including air pollution and traffic congestion. However, it only makes sense to apply the tax to congested roads where there is a real externality problem. Applying the tax to non-congested roads does not make sense, as there is no externality issue to address. Therefore, option C is correct, while options A and B are not.

Question 15

Nine friends who love the beach decide to pool their financial resources and equally share the cost of a one-week house rental on Nantucket.Suppose that the beach outside of the house becomes more congested when the nine additional people join the other beachgoers.Which of the following statements is not correct?

Accepted Answer

This statement is not correct because the friends decided to rent a house on Nantucket because they love the beach. Therefore, they would not have been better off staying at home as they wanted to be at the beach.

Question 16

Why do elephants face the threat of extinction while cows do not?

Accepted Answer

The answer of Why do elephants face the threat of...

Question 17

The goal of requiring licenses for hunting and fishing is

Accepted Answer

The answer of The goal of requiring licenses for hunting...

Question 18

When Rick uses a common resource and diminishes other people's enjoyment of it,he creates

Accepted Answer

Rick's action of using the common resource and diminishing other people's enjoyment of it creates a negative externality, where the cost of his action is borne by others who are not party to the transaction. This can lead to market failure and inefficiency.

Question 19

What do American drivers on congested roads and Soviet shoppers waiting in line to purchase clothing have in common?

Accepted Answer

American drivers on congested road are consuming the service of the road without paying the full cost of their usage, as the cost of congestion is borne by every driver using the road. Similarly, Soviet shoppers waiting in line to purchase clothing were consuming the clothing at prices that did not represent their full cost, as the government was subsidizing the production of clothing.

Question 20

One proposed solution to overused,deteriorating national parks would be to

Accepted Answer

The answer of One proposed solution to overused,deteriorating national parks...

Quiz 11: Public Goods and Common Resources