Question 1

Which of the following goods is NOT rival and NOT excludable?
A) a boat
B) a public road
C) an ice cream cone
D) a street light

Accepted Answer

The answer of Which of the following goods is NOT...

Question 2

In the long run, individual transferable quotas ______ the fishing catch in New Zealand.
A) decreased
B) did not affect
C) increased
D) had an indeterminate effect upon

Accepted Answer

Individual transferable quotas increased the fishing catch in New Zealand. This is because the quotas incentivized individual fishermen to fish sustainably and efficiently, as they were able to sell or lease their unused quota to others. This led to a more efficient use of resources and an increase in overall catch levels.

Question 3

Tuna fish are being driven to extinction because of overfishing. If all the fishermen know about this, why don't they fish less to slow down the extinction?
A) The kind of fishing equipment that is used does not allow for smaller catches.
B) There is a lack of well-defined property rights over the stock of tuna fish in the sea.
C) The fishermen do not realize that their way of life will also become extinct.
D) Their governments have not considered tradable allowances as a solution.

Accepted Answer

The lack of well-defined property rights means that fishermen have no incentive to conserve due to the tragedy of the commons, where everyone is free to exploit the resource, leading to overfishing. Without clear ownership or control, individuals do not have a reason to conserve and will continue to fish as much as possible. The other options, while potentially relevant, do not explain the root cause of overfishing and the failure of conservation measures.

Question 4

Tuna in the ocean is a common resource because:
A) it is difficult to prevent people from fishing in the ocean and every time someone catches tuna there is less tuna for someone else.
B) all tuna are identical (i.e., a homogenous good) and sold in competitive markets.
C) there is an abundance of tuna and no one fisherman can affect the market equilibrium output.
D) None of the answers is correct.

Accepted Answer

Tuna in the ocean is a common resource because it is difficult to prevent people from fishing in the ocean and every time someone catches tuna there is less tuna for someone else. This creates a tragedy of the commons, where individuals have an incentive to exploit the resource leading to overfishing and depletion of the tuna stock.

Question 5

Which of the following examples specifies the cause of the tragedy of the common?
A) People like to eat chicken so demand for chicken has significantly increased.
B) The supply of chicken is plentiful, causing the profit margin of selling chicken to decrease.
C) Tuna in the ocean are not privately owned so fishermen have an incentive to overfish.
D) The supply of tuna is rare, creating high profit margins and incentives for fishermen to underfish tuna.

Accepted Answer

The tragedy of the commons refers to the overuse and depletion of shared resources that do not have clearly defined property rights. In this case, the fact that tuna in the ocean are not privately owned means that each individual fisherman has an incentive to catch as many tuna as possible before their competitors do, leading to overfishing and potentially the collapse of the tuna population. The other options do not specifically address the cause of the tragedy of the commons.

Question 6

Which of the following is rival and NOT excludable?
A) cable TV
B) lobsters in the ocean
C) national defense
D) clothing

Accepted Answer

Lobsters in the ocean are rival (meaning consumption by one person reduces the amount available to others) but not excludable (meaning it is difficult or impossible to prevent someone from using it). Cable TV and clothing are both rival and excludable, while national defense is non-rival and non-excludable.

Question 7

Which of the following scenarios describes how a tragedy of the commons problem occurs?
A) A radio station goes out of service because it cannot raise enough money from advertising.
B) Illegal immigrants who do not pay taxes benefit from tax-funded school systems.
C) Farmers harvest deer out of season rather than pay the high price of beef.
D) The establishment of tradable pollution allowances helps reduce pollution.

Accepted Answer

The answer of Which of the following scenarios describes how...

Question 8

Overutilization and lack of conservation are more likely a problem for:
A) private goods.
B) material goods.
C) goods that are not owned.
D) cows and chickens.

Accepted Answer

The answer of Overutilization and lack of conservation are more...

Question 9

During the Middle Ages, many villages had areas reserved for families to take their cows or sheep to graze. All families were welcome to use this land without charge. The land for grazing can be characterized as a:
A) public good.
B) private good.
C) natural resource.
D) common resource.

Accepted Answer

The land for grazing was accessible to all families without charge, indicating that it was a common resource that could be used by all. It was not privately owned, nor was it a natural resource that required extraction or harvesting. While it was available for public use, it was not a public good since its use by one family did not diminish its availability for use by others.

Question 10

A good is nonrival if:
A) the good does not cause rivalry between the people using the good.
B) the good potentially creates rivalry between the people using the good.
C) one person's use of the good reduces the ability of another person to use the same good.
D) one person's use of the good does not reduce the ability of another person to use the same good.

Accepted Answer

A nonrival good is a type of good where one person's use of the good does not reduce the ability of another person to use the same good. Choice A is irrelevant since the concept of rivalry refers to the competition or conflict between individuals who seek to use the same good or resource. Choice B is incorrect since the phrase "potentially creates rivalry" suggests that the good itself could generate a conflicting situation between users. Finally, choice C is a description of rival goods, where individuals consume or use up resources at the expense of others.

Question 11

The tragedy of the commons is the tendency for any good which is:
A) rival and excludable to be underused and overmaintained.
B) nonrival and nonexcludable to be underused and overmaintained.
C) rival and nonexcludable to be overused and undermaintained.
D) nonrival and excludable to be overused and undermaintained.

Accepted Answer

The tragedy of the commons refers to the overuse of a resource that is rival (meaning one person's use limits another's) and non-excludable (meaning it cannot be easily restricted to certain users). This leads to overuse and undermaintenance because each user has an incentive to use as much of the resource as possible before others do, but no one has an incentive to maintain or conserve it.

Question 12

The tragedy of the commons is often the result of:
A) excludability and rivalry.
B) excludability and nonrivalry.
C) nonexcludability and rivalry.
D) nonexcludability and nonrivalry.

Accepted Answer

The tragedy of the commons occurs when a resource is nonexcludable (meaning people cannot be prevented from using it) and rival (meaning one person's use of the resource diminishes its availability to others). This creates a situation where each individual has an incentive to use as much of the resource as possible, leading to overuse and depletion of the resource. Option C is the only one that includes both nonexcludability and rivalry.

Question 13

Which of the following scenarios best describes a tragedy of the commons problem?
A) Neighborhood residents discover strawberry plants in the flower beds at the city park.
B) Illegal immigrants who do not pay taxes benefit from tax-funded police patrols.
C) Pacifists become forced riders in tax hikes to fund national defense plans.
D) There is overcrowding on otherwise nice public beaches.

Accepted Answer

The answer of Which of the following scenarios best describes...

Question 14

During the Middle Ages, many villages had areas reserved for families to take their cows or sheep to graze. All families were welcome to use this land without charge. This situation likely led to a(n):
A) tragedy of the commons.
B) finite of proportions.
C) marketable public good.
D) exhaustive equilibrium.

Accepted Answer

The situation described is a classic example of the tragedy of the commons, where the shared resource (in this case, the grazing land) is overused and eventually depleted due to lack of regulation or ownership.

Question 15

The tragedy of the commons occurs when a good is:
A) rival in consumption and excludable.
B) rival in consumption and not excludable.
C) not rival in consumption and excludable.
D) neither rival in consumption nor excludable.

Accepted Answer

The tragedy of the commons occurs when a good is rival in consumption and not excludable. This means that the good is finite and when one person uses it, it limits the amount available for others. Additionally, because the good is not excludable, people cannot be easily prevented from using it, leading to overuse and depletion of the resource.

Question 16

An example of a common resource would be:
A) a street light.
B) the environment.
C) clothing.
D) cable TV.

Accepted Answer

Common resources are those that are shared by many individuals and are not owned by anyone in particular, like the environment. The other options are either privately owned (clothing, cable TV) or owned by the government/municipality (street light).

Question 17

Common resources are goods that are:
A) excludable and rival.
B) excludable but nonrival.
C) nonexcludable but rival.
D) nonexcludable and nonrival.

Accepted Answer

Common resources are nonexcludable but rival, meaning that anyone can use the resource, but one person's use of the resource reduces the amount available for others. A classic example of a common resource is a fishery. If more and more fishermen are allowed to fish in the same area, there will be fewer fish available for each of them, which leads to overfishing and depletion of the resource.

Question 18

A common resource is:
A) likely to be overutilized.
B) a good that, when used by one person, leaves less for everyone else.
C) rival but nonexcludable.
D) All of the answers are correct.

Accepted Answer

A common resource is a good that is both rivalrous (when one person uses it, it reduces the amount available to others) and non-excludable (it is difficult or impossible to prevent others from using it). Because of these characteristics, common resources are likely to be overutilized, leading to depletion or degradation of the resource. Therefore, all of the answers are correct.

Question 19

Which of the following is the explanation for why wild animals are often hunted to the point of extinction?
A) cost-benefit analysis
B) public goods
C) tragedy of the commons
D) There is no known explanation.

Accepted Answer

The tragedy of the commons refers to the situation where individuals or groups, acting in their own self-interest, consume or deplete a common resource to the point of exhaustion. In the case of wild animals, people may hunt them for food, sport, or other reasons without considering the long-term impact on the animal populations or the ecosystem. As a result, the animals may be hunted to the point of extinction, which ultimately harms both humans and the environment.

Question 20

Which of the following is an example of the tragedy of the commons?
A) Tuna in the ocean are being over harvested because it is difficult to prevent anyone from fishing for tuna.
B) Personal computers have become a commonplace appliance in many homes, causing an expedited tragedy of technology.
C) There is an increasing threat to wildlife due to habitat loss in national forests.
D) Television's popularity has become a common tragedy in our society.

Accepted Answer

The tragedy of the commons refers to the situation where a shared resource like fish in the ocean is depleted faster than the replenishment rate because it is difficult to restrict individuals from accessing it. Tuna being over harvested due to the inability to prevent anyone from fishing for it is a classic case of the tragedy of the commons. The other options do not fit this definition.

Quiz 19: Public Goods and the Tragedy of the Commons

Which of the following goods is NOT rival and NOT excludable?

In the long run, individual transferable quotas ______ the fishing catch in New Zealand.

Tuna fish are being driven to extinction because of overfishing. If all the fishermen know about this, why don't they fish less to slow down the extinction?

Tuna in the ocean is a common resource because:

Which of the following examples specifies the cause of the tragedy of the common?

Which of the following is rival and NOT excludable?

Which of the following scenarios describes how a tragedy of the commons problem occurs?

Overutilization and lack of conservation are more likely a problem for:

During the Middle Ages, many villages had areas reserved for families to take their cows or sheep to graze. All families were welcome to use this land without charge. The land for grazing can be characterized as a:

A good is nonrival if:

The tragedy of the commons is the tendency for any good which is:

The tragedy of the commons is often the result of:

Which of the following scenarios best describes a tragedy of the commons problem?

During the Middle Ages, many villages had areas reserved for families to take their cows or sheep to graze. All families were welcome to use this land without charge. This situation likely led to a(n) :

The tragedy of the commons occurs when a good is:

An example of a common resource would be:

Common resources are goods that are:

A common resource is:

Which of the following is the explanation for why wild animals are often hunted to the point of extinction?

Which of the following is an example of the tragedy of the commons?