Question 1

"The role of government in the economy should be restricted to the assignment and enforcement of property rights." Use this statement to explain why African elephants are on the verge of becoming extinct.What are the governments' possible solutions to this problem

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The answer of "The role of government in the economy...

Question 2

Based on "The Dismal Education" by Yoram Bauman,what is the main reason that students majoring in economics tend to contribute less to public goods than other students

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The answer of Based on "The Dismal Education" by Yoram...

Question 3

Can we use cost and benefit analysis to evaluate human life and how

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The answer of Can we use cost and benefit analysis...

Question 4

The profit motive that stems from private ownership has proven to be detrimental to elephant populations.

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The answer of The profit motive that stems from private...

Question 5

Some advocates of antipoverty programs claim that fighting poverty is a public good.Explain what these advocates mean by classifying charity as a public good.What does this have to do with the need for government intervention

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The answer of Some advocates of antipoverty programs claim that...

Question 6

Roads can be considered either public goods or common resources,depending on how congested they are.

Accepted Answer

If the roads are congested, they become common resources as they can be depleted or overused. If they are not congested, they can be considered public goods as they can be used without reducing the availability for others.

Question 7

The citizens of Smalltown,Canada like seeing fireworks on Canada Day.Each of the town's 1000 residents places a $5 value on the experience.The cost of putting on a fireworks display is $1000.Should there be a fireworks display
 What is socially optimal
 Would the private market result in a fireworks display

Accepted Answer

The answer of The citizens of Smalltown,Canada like seeing fireworks...

Question 8

Clean air and clean water are both public goods.

Accepted Answer

Clean air is a public good because it is non-excludable and non-rivalrous, but clean water is not a public good because it can be excludable and rivalrous, especially when it is privatized or scarce.

Question 9

The creation of knowledge is a public good.Because knowledge is a public good,profit-seeking firms tend to free-ride on the knowledge created by others and,as a result,devote too few resources to the creation of knowledge.How does the government correct for this apparent market failure

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The answer of The creation of knowledge is a public...

Question 10

Why do salmon populations face the threat of extinction while goldfish populations are in no such danger

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The answer of Why do salmon populations face the threat...

Question 11

Given the table,place each of the following in the correct location in the table.  
a. congested toll roads
b. knowledge
c. fish in the ocean
d. national defence
e. congested nontoll roads
f. Internet service
g. the environment
h. fire protection
i. ice cream cones
j. uncongested toll roads
k. clothing
l. uncongested nontoll roads

Accepted Answer

The answer of Given the table,place each of the following...

Question 12

Tolls could not be used to alter people's incentives to drive during rush hour.

Accepted Answer

Tolls can be used as a congestion pricing mechanism to discourage driving during peak hours by making it more expensive, altering people's incentives to drive at different times.

Question 13

The government often intervenes when private markets fail to provide an optimal level of certain goods and services.For example,the government imposes an excise tax on gasoline to account for the negative externality that drivers impose on one another.Why might the private market not reach the socially optimal level of traffic on the road without the help of government

Accepted Answer

The answer of The government often intervenes when private markets...

Quiz 11: Public Goods and Common Resources