Question 1 A major difference between a private good and a public...

Question 1

1. A major difference between a private good and a public good is that private goods:

   	A.	can be produced in efficient quantities while public goods generally are not.
   	B.	All of the answers are correct.
   	C.	are excludable, public goods are not.
   	D.	are rival in consumption, public goods are not.

Question 2

1. Hamburgers are example of goods that are:

   	A.	nonrival and nonexcludable.
   	B.	nonrival and excludable.
   	C.	rival and excludable.
   	D.	rival and nonexcludable.

Question 3

1. In the case of broadcast, antenna television, the ______ problem is partly overcome through the use of advertising.

   	A.	accessibility problem
   	B.	free rider problem
   	C.	revenue stream problem
   	D.	liquidity problem

Question 4

1. A cable television show like The Sopranos, for example, is:

   	A.	rival and excludable.
   	B.	nonrival but excludable.
   	C.	rival but nonexcludable.
   	D.	nonrival and nonexcludable.

Question 5

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

   	A.	had an indeterminate effect upon
   	B.	did not affect
   	C.	increased
   	D.	decreased

Question 6

1. Which of the following goods best exemplifies a nonrival good?

   	A.	an automobile
   	B.	the Internet
   	C.	your apartment
   	D.	a bottle of water

Question 7

1. After Napster was introduced in 1999 as a peer-to-peer file-sharing Internet service, people could cheaply distribute music. Thanks to this and other innovations (“ripping” CDs, torrents, YouTube), music is becoming increasingly:

   	A.	private.
   	B.	nonrival.
   	C.	taxable.
   	D.	nonexcludable.

Question 8

1. Wealthy industrialist Henry Hawk fears an asteroid hitting Earth and is willing and able to pay $15 billion to develop an asteroid deflection system. Suppose asteroid deflection only costs $10 billion and Hawk makes asteroid deflection a reality. What type of good has Henry Hawk provided?

   	A.	commons resource
   	B.	public good
   	C.	private good
   	D.	nonrival private good