Question 1

Under which of the following scenarios would a park be considered a club good?

Accepted Answer

A club good is non-rivalrous and excludable. In scenario A, the park is excludable due to the admittance fee and non-rivalrous because there are always plenty of empty picnic tables, meaning one person's use does not diminish availability for others.

Question 2

The Great Lakes are

Accepted Answer

The Great Lakes are a limited resource that is difficult to exclude others from using, making them a common resource. Anyone can access and use the lakes for things like fishing or boating, but their use can be depleted or disrupted if too many people exploit them.

Question 3

A pizza is

Accepted Answer

A pizza is excludable because it can be physically withheld from those who do not pay for it or do not have access to it. It is also rival in consumption because if one person eats a slice, it cannot be consumed by another person.

Question 4

Because it is

Accepted Answer

A tornado siren is not excludable because it is impossible to prevent anyone from hearing it once it is activated. It is also not rival in consumption because one person hearing the siren does not prevent others from hearing it as well. Therefore, a tornado siren is a public good.

Question 5

Pay-per-view broadcasts are

Accepted Answer

Pay-per-view broadcasts are typically only accessible to those who have paid for them, making them exclusionary. However, they are not non-rivalrous and anyone who has paid for them can use them without diminishing their value for others. This makes them a type of club good.

Question 6

A local park filled with picnickers is

Accepted Answer

The park is not excludable because it is open to the public and anyone can access it without paying. It is rival in consumption because the more people there are in the park, the less space there is available for others to use. Thus, it fits the characteristics of a common resource.

Question 7

A streetlight is a

Accepted Answer

A streetlight is a public good because it is non-excludable and non-rivalrous, meaning anyone can use it without reducing its availability to others.

Question 8

An internet radio broadcast is

Accepted Answer

An internet radio broadcast is not excludable because anyone with internet access can listen to it without preventing others from doing so, and it is not rival in consumption because one person's listening does not diminish the ability of others to listen.

Question 9

Consider a public road that anyone is allowed to drive on. If the road is often congested, the road would be considered a

Accepted Answer

A common resource is a good that is non-excludable but rivalrous, meaning anyone can use it, but use by one person diminishes the availability to others. This accurately describes a congested public road, as anyone can drive on it but as more people use it, it becomes more crowded and less available to others. A private good is excludable and rivalrous, meaning it can be owned and used solely by one person and use by one person diminishes the availability to others. A club good is excludable but non-rivalrous, meaning it is owned and controlled by a group but can be used by many without diminishing its availability. A public good is non-excludable and non-rivalrous, meaning it is available to everyone and use by one person does not diminish its availability to others, which does not accurately describe a congested public road.

Question 10

Under which of the following scenarios would a park be considered a public good?

Accepted Answer

A public good is defined as a good that is non-excludable and non-rivalrous. In this case, the park can be used by anyone without exclusion and the consumption of the park by one person does not reduce the availability of the park to others. The fact that there are always plenty of picnic tables in the park further supports the idea that the park is non-rivalrous. The absence of an admittance fee also reinforces the non-excludability of the park. Therefore, this scenario best fits the definition of a public good.

Question 11

The Pennsylvania Turnpike is a tolled freeway running through the state of Pennsylvania. Motorists must pay tolls at various points along the Turnpike based on the distance they traveled on the freeway. Suppose that despite the tolls, many motorists in the urban areas use the Turnpike causing traffic to slow during peak times. What type of good would the Turnpike be classified as in this case?

Accepted Answer

The answer of The Pennsylvania Turnpike is a tolled freeway...

Question 12

A vacation home in Malibu is

Accepted Answer

A vacation home in Malibu is rival in consumption because its use by one person limits its use by another person, and it is excludable because its use can be restricted to specific individuals or groups (i.e. the owner and their guests).

Question 13

A mobile phone is a

Accepted Answer

A mobile phone is a private good because it is both excludable and rivalrous, meaning its use is limited to the owner and its consumption by one person prevents others from using it.

Question 14

A congested side street in your neighborhood is

Accepted Answer

The answer of A congested side street in your neighborhood...

Question 15

At the local park there is a playground for children to use. While anyone is allowed to use the playground, it is often very busy, reducing the enjoyment of many of the children who use it. The playground is a

Accepted Answer

The playground is a common resource because it is non-excludable (anyone can use it) but rivalrous (its use by many reduces enjoyment for others).

Question 16

A cheeseburger is a

Accepted Answer

A cheeseburger is a private good, because it is both excludable (meaning someone can be prevented from consuming it) and rival in consumption (meaning one person's consumption reduces the amount available for others).

Question 17

At the local park there is a playground that anyone may use. There is rarely anyone using the playground, so children who use the playground receive full enjoyment from its use. The playground is

Accepted Answer

The playground is not rival in consumption as multiple children can use it simultaneously without diminishing its use for others. It is also not excludable as there are no barriers to prevent anyone from using it.

Question 18

A cable television broadcast of a movie is

Accepted Answer

Cable television broadcasts of a movie are excludable because only those who have a subscription to the cable service can access the channel that shows the movie. However, it is not rival in consumption because one person watching the movie does not reduce the ability of others to watch it simultaneously.

Question 19

Fire protection is a

Accepted Answer

Fire protection is a club good because it is excludable (services can be limited to those who pay for them) but not rival in consumption (one person's use does not diminish availability to others).

Question 20

The Mansfield Public Library has a large number of books that anyone with a library card may borrow. Anyone can obtain a card for free. Because the number of copies of each book is limited, not everyone can have the same book at the same time. What type of good would the library books be classified as in this case?

Accepted Answer

Library books are classified as common resources because they are rivalrous (limited copies mean not everyone can have the same book at the same time) but non-excludable (anyone with a library card can borrow them for free).

Quiz 11: Public Goods and Common Resources