Question 1

To most economists,the best solution to the overcrowding problem at Yellowstone National Park is to

Accepted Answer

Increasing entrance fees is a market-based solution that can help manage demand by reducing the number of visitors, thus addressing overcrowding while generating additional revenue for park maintenance and conservation efforts.

Question 2

Very few entrepreneurs operate their own nature parks in the U.S.because

Accepted Answer

Government-sponsored national parks often set entrance fees below costs, making it difficult for private entrepreneurs to compete and operate their own nature parks profitably.

Question 3

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 can help manage the number of visitors by making it more expensive to enter, potentially reducing overuse.

Question 4

Raising the entrance fee at Yellowstone National Park would not

Accepted Answer

Raising the entrance fee would not make the national park a private good, as it would still be non-excludable and non-rivalrous in nature.

Question 5

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 6

Elephant populations in some African countries have started to rise because

Accepted Answer

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

Question 7

Suppose all citizens in a certain city are given identical debit cards used to pay for toll roads.Which of the following statements would not be correct,assuming that the debit cards could be sold privately from person to person?

Accepted Answer

The statement that the cost to the government of such a program would greatly outweigh the benefit to society is not necessarily correct. This statement is an assumption and cannot be determined as true or false without further information. The other statements are all plausible outcomes of a system in which citizens are given identical debit cards to pay for toll roads.

Question 8

On hot summer days,electricity-generating capacity is sometimes stretched to the limit.At these times,electric companies may ask people to voluntarily cut back on their use of electricity.An economist would suggest that

Accepted Answer

By raising rates for electricity at peak times, customers would have a financial incentive to reduce their usage and the electric company could better manage their resources. A lottery or forcing everyone to cut back by the same amount may not result in the most efficient use of electricity, and relying solely on voluntary actions may not be effective in preventing overloading of the system.

Question 9

A good solution to saving the tiger from extinction would be to

Accepted Answer

The answer of A good solution to saving the tiger...

Question 10

Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws.Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws,we can likely conclude that

Accepted Answer

The answer of Residents of Hong Kong are able to...

Question 11

The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States.Any farmer with land above the aquifer can at present pump water out of it.Which of the following statements about the aquifer is correct?

Accepted Answer

The Ogallala aquifer is a common property resource, which means it belongs to no one and is available for use by anyone. However, since anyone can pump water out of the aquifer, there is no incentive for individual farmers to conserve this resource. As a result, the aquifer is at risk of being overused if no one takes ownership of it or if regulations are not put in place to limit use.

Question 12

The commercial value of ivory is a threat to the elephant,but the commercial value of beef is a guardian of the cow.This is because

Accepted Answer

Cows are raised as private goods, meaning that they are owned by individuals who have a financial incentive to protect and manage their herds for maximum profitability. On the other hand, elephants often roam freely without individual ownership and are hunted for their ivory, which creates a perverse financial incentive for their destruction. Therefore, the commercial value of beef serves as a guardian of the cow, while the commercial value of ivory poses a threat to the elephant.

Question 13

A stairwell in a certain office building is always congested at 12:00 p.m.and 2:00 p.m.The congestion is so bad that people have been complaining to the building's owner.Which of the following methods would be the most efficient way of reducing congestion?

Accepted Answer

Option C is the most efficient way of reducing congestion because it creates an incentive for people to use the stairwell at non-peak times. People who are willing to pay the fee will still use the stairwell, but those who are not willing to pay will be encouraged to use the elevator or wait until later to use the stairs. Option A is unfair because it discriminates against people based on their income level. Option B relies on voluntary compliance, which may not be sufficient to reduce congestion. Option D is arbitrary and does not create a clear incentive for people to use the stairwell at non-peak times.

Question 14

Why has the value of ivory threatened the extinction of the elephant,whereas the value of beef has enhanced the survival of the cow?

Accepted Answer

Elephants are a common resource, which means they are not privately owned and controlled. This makes it difficult to regulate the hunting/poaching of elephants for their ivory. On the other hand, cows are privately owned, and their value as a source of meat and dairy provides an incentive for farmers to breed and protect them, thus enhancing their survival.

Question 15

Which of the following statements best describes the cause of "overrun and overtrampled" national parks?

Accepted Answer

If visitors do not view national parks as a valuable resource, they may treat them as free goods and overuse them. This could lead to the parks being overrun and overtrampled. Park administrators may also need to work on better education and messaging about the importance of responsible park use. The other options do not address the issue of visitor behavior and attitudes towards national parks.

Question 16

Which of the following statements concerning Yellowstone National Park is not correct?

Accepted Answer

While additional federal funding may be used for improvements and maintenance of the park, it is not a guarantee to reduce overcrowding. Other management strategies like timed entry permits or shuttle systems may be more effective in reducing overcrowding.

Question 17

Imagine a 2,000-acre park with picnic benches,trees,and a pond.Suppose it is publicly owned,and people are invited to enjoy its beauty.When the weather is nice,it is difficult to find parking,and the trash cans overflow with food wrappers on summer afternoons.Otherwise,it is a great place.The park is a common resource because

Accepted Answer

The park is a common resource because its use is non-excludable but rivalrous, meaning that one person's use can prevent others from using it. This is evident in the scenario where it is difficult to find parking and overcrowding leads to overflowing trash cans, making it unpleasant for others to enjoy the park. A common resource requires management to prevent overuse and ensure that it is available for all to enjoy. Options A, B, and D do not accurately describe the characteristics of a common resource.

Question 18

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

Accepted Answer

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

Question 19

On holiday weekends thousands of people hike on national park hiking trails.Some trails become so overcrowded the benefit or value of hiking diminishes to zero.Suppose that the National Park Service institutes a variable fee structure.On weekdays when the trails get little use,the fee is zero.On normal weekends,the fee is $15 per person.On holiday weekends,the fee is $35 per person.The fee system is an example of a

Accepted Answer

The fee system is an example of a pricing system, as it involves charging different fees based on the level of demand for the hiking trails.

Question 20

Ten friends who love to ski decide to pool their financial resources and equally share the cost of a one-week time-share condominium in Alta,Utah.Suppose that the lift lines at the ski resort become more congested when the ten additional people start to ski.Which of the following statements is not correct?

Accepted Answer

This statement is not correct because each of the ten friends would likely still value the experience of skiing together at the time-share condominium, even with the increased congestion at the ski resort. Additionally, it is possible that the externality of congestion could be addressed through other means, such as improving lift infrastructure or implementing better crowd control measures, rather than simply raising lift ticket prices.

Quiz 11: Public Goods and Common Resources