A. government regulation
B. that prices are not low enough so firms over produce
C. that prices are not high enough, so people overconsume
D. that property rights have not been well established
Public Goods
A public good is ?
A. neither rival nor excludable
B. rival but not excludable.
C. both rival but excludable
D. not rival but excludable
A good produced by a natural monopoly is ?
A. rival but not excludable
B. neither rival nor excludable
C. not rival but excludable
D. both rival and excludable
A common resource is ?
A. not rival but excludable
B. both rival and excludable
C. rival but not excludable
D. neither rival nor excludable
Which of the following is an example of a common resource ?
A. a firework displays
B. national defense
C. iron one
D. a national park
Which of the following are potential solutions to the problem of air pollution?
A. Grant right of the clean air to citizens so that firms must purchase the right to pollute
B. Auctions off pollution permits.
C. Regulate the amount of pollutants that firms can put in the air
D. all of these answers
If a person can be prevented from using a good, the good is said to be ?
A. excludable
B. a common resource
C. a public goods
D. rival
Suppose each of 20 neighbours on street values street repairs at €3000 the cost of the street repair is €40,000 which of the following statements is true ?
A. it is efficient for the government to tax the resident €2,000 each and repair the road
B. It is efficient for each neighbour to pay €3,000 to repair the section of street in front of his/her home
C. None of these answers are true
D. it is not efficient to have the street repaired
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
