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2. Public Goods and Common Resources 11 CLICKER QUESTIONS

3. Click on the button to go to the Question Click on the button to go to the problem © 2013 Pearson Question 1 Question 2 Question 3 Question 4 Question 5 Question 7 Question 8 Question 6 Question 9 Question 10 Checkpoint 11.1 Checkpoint 11.2Checkpoint 11.3

4. © 2013 Pearson CHECKPOINT 11.1 A.can only be consumed by one person at a time B.can be consumed simultaneously by many people C.is any good provided by a company owned by a member of the public D.is any good provided by government E.is both rival and excludable Question 1 A public good ___________.

5. © 2013 Pearson CHECKPOINT 11.1 A.something that is external to the economy B.a tax on a good in addition to the market price C.an effect of a transaction felt by someone other than the consumer or producer D.anything produced in another country E.a change from what is normal Question 2 Which of the following items best describes an externality?

6. © 2013 Pearson CHECKPOINT 11.1 A.national defense B.a Ford Thunderbird C.Yosemite national park D.logging in the Amazon basin E.Internet Question 3 Which of the following is the best example of a mixed good with external costs?

7. © 2013 Pearson CHECKPOINT 11.2 A.average of the marginal benefits of all the people in the economy at each quantity of the good B.marginal benefit of the person who places the lowest value on the good, multiplied by the number of people in the economy C.marginal benefit of the person who places the highest value on the good, multiplied by the number of people in the economy D.benefit of the last person’s consumption E.sum of the marginal benefits of all the people in the economy at each quantity Question 4 The marginal benefit of a public good is the ___________.

8. © 2013 Pearson CHECKPOINT 11.2 A.the quantity that private firms produce B.the quantity at which the marginal benefit from the good equals the marginal cost of producing it C.impossible to determine because each person’s marginal benefit is different D.the quantity at which the marginal benefit exceeds the marginal cost by the largest possible amount E.where the quantity demanded of the good equals the quantity supplied of the good Question 5 The efficient quantity of a public good is ________.

9. © 2013 Pearson CHECKPOINT 11.2 A.budget maximization; irrational exuberance B.budget minimization; irrational intelligence C.budget maximization; minimum differentiation D.budget maximization; rational ignorance E.minimum differentiation; budget maximization Question 6 Government bureaucracies overprovide public goods because of their goal of _____ combined with the _____ of the voters.

10. © 2013 Pearson CHECKPOINT 11.3 A.correctly measure the marginal cost of using the resource B.prevent underutilization of the common resource C.prevent overuse and depletion of the common resource D.discover the resource E.prevent the free-rider problem Question 7 The tragedy of the commons is the absence of incentives to _______.

11. © 2013 Pearson CHECKPOINT 11.3 A.greater than the marginal social benefit B.equal to the marginal social benefit C.less than the marginal social benefit D.not related to the marginal social benefit E.not defined because the resource is nonexcludable Question 8 For a common resource, the marginal private benefit from a given quantity of the resource is _______.

12. © 2013 Pearson CHECKPOINT 11.3 A.marginal private benefit equals marginal cost B.marginal social benefit equals marginal cost C.marginal private benefit equals marginal social benefit D.marginal private cost equals marginal cost E.marginal private benefit equals marginal social cost Question 9 Efficient use of a common resource requires that its ____.

13. © 2013 Pearson CHECKPOINT 11.3 A.the resource will be underutilized B.the marginal social benefit becomes the marginal private benefit C.the government must set a quota to achieve efficient use D.the resource becomes a private good and cannot be used E.a free-riding problem will emerge Question 10 If the government assigns private property rights to a common resource, then ________.