chapter 11 - Chapter 11 Public Goods and Common Resources...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 11 Public Goods and Common Resources TRUE/FALSE 1. When goods are available free of charge, the market forces that normally allocate resources in our economy are absent. ANS: T DIF: 2 REF: 11-0 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Market failure MSC: Interpretive 2. Free goods are usually efficiently allocated without government intervention. ANS: F DIF: 2 REF: 11-0 NAT: Analytic LOC: Markets, market failure, and externalities TOP: Market failure MSC: Interpretive 3. Most goods in our economy are allocated in markets, where buyers pay for what they receive and sellers are paid for what they provide. ANS: T DIF: 1 REF: 11-0 NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Private goods MSC: Applicative 4. Government intervention cannot improve the allocation of resources for goods that do not have prices attached to them. ANS: F DIF: 2 REF: 11-0 NAT: Analytic LOC: The role of government TOP: Public goods MSC: Interpretive 5. A good that is excludable but not rival is known as a natural monopoly. ANS: T DIF: 1 REF: 11-1 NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Natural monopolies MSC: Definitional 6. National Public Radio would be considered a natural monopoly. ANS: F DIF: 2 REF: 11-1 NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Natural monopolies MSC: Interpretive 7. Concerts in arenas are not excludable because it is virtually impossible to prevent someone from seeing the show. ANS: F DIF: 1 REF: 11-1 NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Excludability MSC: Applicative 8. A pair of jeans is rival but non-excludable. ANS: F DIF: 1 REF: 11-1 NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Excludability | Rivalry in consumption MSC: Applicative 9. A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it. ANS: F DIF: 1 REF: 11-1 NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Excludability | Rivalry in consumption MSC: Definitional 10. Some goods can be classified as either public goods or private goods depending on the circumstances. ANS: T DIF: 2 REF: 11-1 NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Public goods | Private goods MSC: Interpretive 220 221 Chapter 11/Public Goods and Common Resources 11. Roads can be considered either public goods or common resources, depending on how congested they are. ANS: T DIF: 1 REF: 11-1 NAT: Analytic LOC: The Study of economics, and definitions in economics TOP: Public goods | Common resources MSC: Applicative 12. When one person enjoys the benefit of a tornado siren, she reduces the benefit to others....
View Full Document

This note was uploaded on 11/09/2011 for the course ECON Econ taught by Professor Morris during the Spring '10 term at City Colleges of Chicago.

Page1 / 48

chapter 11 - Chapter 11 Public Goods and Common Resources...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online