Search
.Management Sciences
Category: Public Goods
When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ?
A. there are no benefits to the public since a public good is not excludable
B. the benefits are infinite because a public good is not rival and an infinite amount of people can consume it at the same time
C. one can never place a value on human life or the environment
D. respondents to naires have little incentive to tell the truth.
Suppose that requiring motorcycle riders to wear helmets reduces the probability of a motorcycle fatality from 0.3 percent to 0.2 percent over the lifetime of a motorcycle rider and that the cost of lifetime supply of helmets is Rs5000. It is efficient for the government to require riders to wear helmets if human life is valued at ?
A. Rs 150 or more
B. Rs 500,000 or more
C. Rs50,000 or more
D. Rs500 or more
E. Rs100 or more
A positive externality affects market efficiency in a manner similar to a ?
A. rival good
B. public good
C. private good
D. common resource
If one person’s consumption of a good diminishes other people’s use of the good, the good is said to be ?
A. rival
B. a good produced by a natural monopoly
C. a common resource
D. excludable
Public goods are difficult for a private market to provide due to ?
A. the rivalness problem
B. the public goods problem
C. the Tragedy of the Commons.
D. The free-rider problem.
A congested toll road is ?
A. a good produced by a natural monopoly
B. a private good
C. a public good
D. a common resource
The Tragedy of the Commons is a parable that illustrates why?
A. common resources are overconsumed
B. public goods are underproduced
C. private goods are under consumed
D. natural monopolies overproduce goods.
A person who regularly watches BBC television programs in the UK but fails to pay their TV licence fee is known as ?
A. excess baggage
B. a free rider
C. a costly rider
D. a common resource
E. an unwelcome rider
A private good is ?
A. rival but not excludable
B. not rival but excludable
C. both rival excludable
D. neither rival nor excludable
A negative externality affect market efficiency in a manner similar to ?
A. an excludable good.
B. a private good
C. a common resource
D. a public good.
Recent Comments