Question 1

An electronic book is an artificially scarce good because the private market _____ prevent consumption by people who do not pay for it. Further, the same e-book _____ be consumed by more than one person at the same time.

Accepted Answer

The answer of An electronic book is an artificially scarce...

Question 2

National defense and e-books are similar in that both are _____, but they differ in that national defense is _____, while e-books are not.

Accepted Answer

The answer of National defense and e-books are similar in...

Question 3

The best example of a public good is:

Accepted Answer

National defense is a public good because it is non-excludable and non-rivalrous, meaning it is available to all citizens without reducing its availability to others.

Question 4

The best example of an artificially scarce good is:

Accepted Answer

Cable television programming is artificially scarce because it is excludable (only paying customers can access it) but non-rivalrous (one person's consumption does not reduce availability for others).

Question 5

If the market produces an efficient level of a good, then we know that the good must be _____ and _____ in consumption.

Accepted Answer

If the market produces an efficient level of a good, then it must be excludable to ensure that those who consume it pay for it, and rival in consumption so that the consumption by one person reduces the amount available for others. This is known as the two key characteristics of private goods, which are excludability and rivalry. Choice D is the only option that satisfies both requirements.

Question 6

Bluefin tuna travel in schools throughout the world's oceans. Fishing boats from many nations harvest bluefin tuna as the schools migrate through their national waters. The schools of bluefin tuna are best described as:

Accepted Answer

Schools of bluefin tuna are a common resource because they are rivalrous (one fisher's catch reduces the availability for others) but non-excludable (it's difficult to prevent others from fishing them).

Question 7

When comparing the characteristics of common resources and artificially scarce goods, we find that:

Accepted Answer

Artificially scarce goods are nonrival because one person's consumption does not reduce availability for others, but they are excludable. Common resources are nonexcludable but rival in consumption, as one person's use diminishes availability for others.

Question 8

The best example of a common resource is:

Accepted Answer

Clean water is a common resource because it is non-excludable and rivalrous, meaning it is available for everyone to use but can be depleted if overused.

Question 9

Which of the following is a private good?

Accepted Answer

A fast-food cheeseburger is a private good because it is both excludable and rivalrous; you can prevent others from consuming it, and its consumption by one person reduces its availability to others.

Question 10

A whale is a common resource because the private market _____ prevent consumption by people who do not pay for it, and the same whale _____ be consumed more than once.

Accepted Answer

The answer of A whale is a common resource because...

Question 11

Stephanie stops at a gas station to fill up the tank of her car. The unleaded gasoline in her tank is best described as a(n):

Accepted Answer

Unleaded gasoline is a private good because it is both excludable (you have to pay for it) and rivalrous (once consumed, it cannot be used by someone else).

Question 12

The best example of a good that is excludable in consumption is:

Accepted Answer

A bicycle is excludable because its owner can prevent others from using it without permission.

Question 13

Josh has an iPhone, and he frequently downloads songs from the iTunes website. He pays a small fee for each download, but downloading a song does not remove it from the iTunes inventory. Other consumers can also pay the fee and download a song that Josh might have already accessed. The iTunes service is best described as(n):

Accepted Answer

An artificially scarce good is non-rivalrous but excludable. iTunes songs are non-rivalrous because one person's download does not prevent others from downloading the same song, but they are excludable because a fee is required to access them.

Question 14

Wenqin lives in a city that has a huge public rose garden. Residents can stroll through the rose garden, enjoy the scenic vistas, or have a picnic, all without paying a fee. The public rose garden is best described as:

Accepted Answer

The public rose garden is nonrival because one person's enjoyment of the garden does not diminish another's ability to enjoy it. It is nonexcludable because residents can access it without paying a fee.

Question 15

If a good has a marginal cost of production of zero and an inefficiently low level of consumption, the good must be a(n):

Accepted Answer

The answer of If a good has a marginal cost...

Question 16

Although most citizens have access to police protection, they also take measures, such as putting locks on their doors, to protect themselves. For most citizens police protection is a(n) _____ good, while self-protection is a(n) _____ good.

Accepted Answer

Police protection is a public good because it is non-excludable and non-rivalrous, while self-protection measures like locks are private goods as they are excludable and rivalrous.

Question 17

DeVonda owns a music store. One night, vandals broke her store's front window. DeVonda called the police, and the police investigated the crime. The police services that DeVonda used are best described as a(n):

Accepted Answer

Public goods are non-excludable and non-rivalrous, meaning that once they are produced, everyone can benefit from them and no one can be excluded from using them. Police services are a public good because once the police investigate a crime, everyone in the community benefits from the increased safety and security.

Question 18

Public goods differ from common resources in that both are _____, but public goods are _____, while common resources are _____.

Accepted Answer

Public goods are nonexcludable and nonrival in consumption, meaning they can be used by everyone without reducing availability to others. Common resources are nonexcludable but rival in consumption, meaning they can be used by everyone but their use by one person reduces availability to others.

Question 19

As a big music fan, you want to attend a weekend blues festival in your town. The purchase of a wristband gives you and thousands of other fans access to the outdoor concert pavilion. The blues festival is a good that has the characteristics of being:

Accepted Answer

The festival is nonrival because one person's attendance does not diminish the ability of others to attend. It is excludable because only those who purchase a wristband can access the event.

Question 20

National defense and clean air are similar in that both are _____, but they differ in that national defense is _____, while clean air is not.

Accepted Answer

Both national defense and clean air are nonexcludable and nonrival in consumption, meaning they are public goods that everyone can benefit from without reducing their availability to others.

Quiz 17: Public Goods Common Resources

An electronic book is an artificially scarce good because the private market _ prevent consumption by people who do not pay for it. Further, the same e-book _ be consumed by more than one person at the same time.

National defense and e-books are similar in that both are _, but they differ in that national defense is _, while e-books are not.

The best example of a public good is:

The best example of an artificially scarce good is:

If the market produces an efficient level of a good, then we know that the good must be _ and _ in consumption.

Bluefin tuna travel in schools throughout the world's oceans. Fishing boats from many nations harvest bluefin tuna as the schools migrate through their national waters. The schools of bluefin tuna are best described as:

When comparing the characteristics of common resources and artificially scarce goods, we find that:

The best example of a common resource is:

Which of the following is a private good?

A whale is a common resource because the private market _ prevent consumption by people who do not pay for it, and the same whale _ be consumed more than once.

Stephanie stops at a gas station to fill up the tank of her car. The unleaded gasoline in her tank is best described as a(n) :

The best example of a good that is excludable in consumption is:

Wenqin lives in a city that has a huge public rose garden. Residents can stroll through the rose garden, enjoy the scenic vistas, or have a picnic, all without paying a fee. The public rose garden is best described as:

If a good has a marginal cost of production of zero and an inefficiently low level of consumption, the good must be a(n) :

Although most citizens have access to police protection, they also take measures, such as putting locks on their doors, to protect themselves. For most citizens police protection is a(n) _ good, while self-protection is a(n) _ good.

DeVonda owns a music store. One night, vandals broke her store's front window. DeVonda called the police, and the police investigated the crime. The police services that DeVonda used are best described as a(n) :

Public goods differ from common resources in that both are ___, but public goods are _, while common resources are ___.

As a big music fan, you want to attend a weekend blues festival in your town. The purchase of a wristband gives you and thousands of other fans access to the outdoor concert pavilion. The blues festival is a good that has the characteristics of being:

National defense and clean air are similar in that both are _, but they differ in that national defense is _, while clean air is not.