Question 1

State whether each of the following goods and services is nonrival,nonexcludable or both:
a.A toll road
b.A public park
c.A lighthouse
d.An art museum
e.A radio broadcast of "A Prairie Home Companion"

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Question 2

How does a public good differ from a quasi-public good? In your answer give an example of each type of good.

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Question 3

In an effort to maintain privacy and enhance property values, three home owners, Deidre, Eugene and Farhad, are considering leasing a portion of adjoining vacant land for a private park. Table 5-1 shows each person's willingness to pay for each quantity of the land.

a. Complete the column in Table 5-1

b. Graph the marginal social benefit curve.

c. Suppose the landowner is willing to lease a portion of her land according to the following supply schedule given in Table 5-2. On the same diagram, graph the supply curve.

d. What is the optimal quantity of land that homeowners should lease? Explain your answer.

e. Explain why a park of 5 acres is not optimal.

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In an effort to maintain privacy and...

Question 4

Determine if each of the products below displays any of the following characteristics:
(i) rivalry
(ii)nonrivalry
(iii)excludability
(iv)nonexcludability.
a. a freeway during peak commute hours
b. an online college course
c. infectious disease prevention
d. open source software such as Linux
e. a movie showing at Century Theatres

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Question 5

"When it comes to public goods,individuals do not reveal their true preferences because it is not in their self interest to do so." Evaluate this statement.

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Question 6

Explain how the decision by parents to not immunize their children,hoping that their children will not get sick because other parents have had their children immunized,is an example of free riding.How is this behavior dangerous to the public?

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Question 7

Define the tragedy of the commons.Give three examples of common resources.Briefly explain why common property resources are subject to overuse.

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Quiz 5: Externalities, environmental Policy, and Public Goods

State whether each of the following goods and services is nonrival,nonexcludable or both: a.A toll road b.A public park c.A lighthouse d.An art museum e.A radio broadcast of "A Prairie Home Companion"

How does a public good differ from a quasi-public good? In your answer give an example of each type of good.

"When it comes to public goods,individuals do not reveal their true preferences because it is not in their self interest to do so." Evaluate this statement.

Explain how the decision by parents to not immunize their children,hoping that their children will not get sick because other parents have had their children immunized,is an example of free riding.How is this behavior dangerous to the public?

Define the tragedy of the commons.Give three examples of common resources.Briefly explain why common property resources are subject to overuse.