Question 1

From the standpoint of economic efficiency,competitive markets provide:

Accepted Answer

The answer of From the standpoint of economic efficiency,competitive markets...

Question 2

Which of the following is a public good?

Accepted Answer

A public good is defined by its two characteristics: non-exclusionary (meaning individuals cannot be prevented from using the good) and non-rivalrous (meaning one person's use of the good does not diminish another person's use). Air traffic control, national defense, and clean air all fit these criteria and are therefore considered public goods.

Question 3

Which of the following is not a characteristic of a public good?

Accepted Answer

A public good is typically defined as a good that is both non-excludable (its benefits cannot be withheld from anyone) and non-rivalrous (consumption by one individual does not diminish the amount available for others). Scarce resources are not characteristic of public goods, as they are often abundant in supply. While public goods may yield widespread benefits, they are not necessarily free.

Question 4

People who enjoy the benefits of a public good without paying for them are called:

Accepted Answer

People who enjoy the benefits of a public good without paying for them are called free riders. They essentially "ride for free" on the efforts of others who have contributed to the provision of the public good.

Question 5

Which of the following is the best example of a public good?

Accepted Answer

National defense is a classic example of a public good because it is non-excludable and non-rivalrous. Non-excludable means that it is impossible to prevent people from benefiting from national defense, regardless of whether or not they pay for it. Non-rivalrous means that one person's consumption of national defense does not diminish another person's ability to consume it. In contrast, apples and cars are both private goods that are excludable and rivalrous, while education can be both private and/or public good depending on the context.

Question 6

A public good may be defined as any good or service that:

Accepted Answer

The answer of A public good may be defined as...

Question 7

Public goods differ from private goods in that:

Accepted Answer

Public goods have the characteristic of non-excludability, meaning that their benefits cannot be denied to anyone. In contrast, private goods can be owned and their benefits can be restricted to those who have paid for them. Therefore, option C is the correct answer. The other options are incorrect because public goods do not necessarily produce negative externalities, they can be scarce, their consumption may not require government regulation, and their benefits may be widespread.

Question 8

Which of the following is an example of a pure public good?

Accepted Answer

An army is a pure public good as it is non-excludable and non-rivalrous. It is non-excludable because it is impossible to prevent people from benefiting from national defense, even if they do not contribute to funding it. It is non-rivalrous because one person's consumption of national defense does not reduce the amount available for others to consume.

Question 9

In order to avoid the free-rider problem,which of the following goods is best provided by the government and paid for with tax dollars?

Accepted Answer

Lighthouses are a classic example of a public good that is best provided by the government because they are non-excludable (people cannot be prevented from benefiting from their light) and non-rival (one person's use of the light does not diminish the ability of others to use it). This leads to the free-rider problem, where individuals have an incentive to not pay for the good because they can benefit from it regardless. By providing lighthouses with tax dollars, everyone is contributing and the free-rider problem is solved.

Question 10

Public goods are usually provided by:

Accepted Answer

Public goods are typically provided by the government, as they are not profitable for private industry to provide and they benefit the public as a whole.

Question 11

Which of the following would be an example of a public good?

Accepted Answer

Public goods are non-excludable and non-rivalrous, meaning that their consumption by one person does not diminish their value or availability for others. A sunset is a natural phenomenon that anyone can enjoy without reducing its availability for others, thus making it a public good.

Question 12

Which of the following is a property of a public good?

Accepted Answer

A public good is defined by the fact that it provides benefits to many individuals simultaneously, which is known as non-excludability. Externalities and free riding are not necessarily inherent properties of public goods, but they can be factors that impact the provision and distribution of public goods. Establishing a public good by law is not a defining property either, as there can be both public goods that are provided by the government and those that are provided by private actors.

Question 13

A competitive market economy is unlikely to provide an efficient quantity of some public goods because:

Accepted Answer

The nature of public goods, which are non-excludable and non-rival, makes it difficult for firms in a competitive market to provide them efficiently. Non-excludability means that it is difficult or impossible to exclude non-paying consumers from using the good or service, which creates the problem of free-ridership. Non-rivalry means that the consumption of the good by one person does not reduce its availability to others. These characteristics make it difficult for private firms to capture the social benefits of producing public goods, leading to underproduction in a competitive market economy.

Question 14

Which if the following is the best example of a public good?

Accepted Answer

National defense is a classic example of a public good. It is non-rivalrous, meaning the consumption of the good by one person does not diminish its availability to others, and it is non-excludable, meaning once it is provided it is difficult to prevent individuals from benefiting from it.

Question 15

A community in a Southeastern state passed a beautification ordinance (law)prohibiting the placement of indoor furniture outside of homes (i.e.,no couches on the porch).The law represents a conflict between ____ and ____.

Accepted Answer

The answer of A community in a Southeastern state passed...

Question 16

Goods whose benefits to society are not diminished as more people consume them and whose benefits cannot be withheld from anyone are:

Accepted Answer

Public goods are goods that do not suffer from the problem of diminishing benefits as more people consume them and it is impossible to exclude anyone from their use. Examples of public goods are street lighting, national defense, and public parks.

Question 17

Which of the following is a public good?

Accepted Answer

A lighthouse is a classic example of a public good because its benefits (i.e. guiding ships and boats to safety) are available to everyone regardless of whether they pay for it or not. The other options (pencil, apple, gun) are all private goods that are not accessible to everyone without payment.

Question 18

If the free market is called upon to provide public goods,then:

Accepted Answer

Public goods are non-excludable and non-rivalrous in consumption, making it difficult for the market to efficiently provide them due to the free-rider problem. The market may fail to produce the optimal amount of public goods because firms will not be able to charge a price that reflects the true social value of the good. As a result, there will be underproduction of public goods, which means fewer goods provided than is optimal.

Question 19

Which of the following is a property of a public good?

Accepted Answer

A public good is defined as a good that is both non-excludable and non-rivalrous in consumption, meaning that once it is provided, all users can collectively consume its benefits without reducing its availability to others. This sets it apart from private goods, which are both excludable and rival. Therefore, choice C, which describes a situation where users collectively consume benefits, is a property of a public good. Choices A, B, and D are not accurate properties of a public good.

Question 20

Which of the following is the best example of a public good?

Accepted Answer

A public good is defined as a good or service that is both non-excludable and non-rivalrous in consumption, meaning that it is available to all members of society and consuming it does not decrease its availability for others. Air traffic control fits this definition, as it is available to all who use the airspace and one person's use of it does not diminish its availability for others. Education and radios are not necessarily non-excludable or non-rivalrous as some people may be excluded from accessing them due to cost or availability, and their consumption can be limited. Cars are considered a private good, as ownership is exclusive and their consumption can be rivalrous.

Quiz 4: Markets in Action

From the standpoint of economic efficiency,competitive markets provide:

Which of the following is a public good?

Which of the following is not a characteristic of a public good?

People who enjoy the benefits of a public good without paying for them are called:

Which of the following is the best example of a public good?

A public good may be defined as any good or service that:

Public goods differ from private goods in that:

Which of the following is an example of a pure public good?

In order to avoid the free-rider problem,which of the following goods is best provided by the government and paid for with tax dollars?

Public goods are usually provided by:

Which of the following would be an example of a public good?

Which of the following is a property of a public good?

A competitive market economy is unlikely to provide an efficient quantity of some public goods because:

Which if the following is the best example of a public good?

A community in a Southeastern state passed a beautification ordinance (law) prohibiting the placement of indoor furniture outside of homes (i.e.,no couches on the porch) .The law represents a conflict between and .

Goods whose benefits to society are not diminished as more people consume them and whose benefits cannot be withheld from anyone are:

Which of the following is a public good?

If the free market is called upon to provide public goods,then:

Which of the following is a property of a public good?

Which of the following is the best example of a public good?

Quiz 4: Markets in Action

From the standpoint of economic efficiency,competitive markets provide:

Which of the following is a public good?

Which of the following is not a characteristic of a public good?

People who enjoy the benefits of a public good without paying for them are called:

Which of the following is the best example of a public good?

A public good may be defined as any good or service that:

Public goods differ from private goods in that:

Which of the following is an example of a pure public good?

In order to avoid the free-rider problem,which of the following goods is best provided by the government and paid for with tax dollars?

Public goods are usually provided by:

Which of the following would be an example of a public good?

Which of the following is a property of a public good?

A competitive market economy is unlikely to provide an efficient quantity of some public goods because:

Which if the following is the best example of a public good?

A community in a Southeastern state passed a beautification ordinance (law) prohibiting the placement of indoor furniture outside of homes (i.e.,no couches on the porch) .The law represents a conflict between ____ and ____.

Goods whose benefits to society are not diminished as more people consume them and whose benefits cannot be withheld from anyone are:

Which of the following is a public good?

If the free market is called upon to provide public goods,then:

Which of the following is a property of a public good?

Which of the following is the best example of a public good?

A community in a Southeastern state passed a beautification ordinance (law) prohibiting the placement of indoor furniture outside of homes (i.e.,no couches on the porch) .The law represents a conflict between and .