微观经济学题库9

Microeconomics^lOe(Parkin)

Chapter16PublicChoicesandPublicGoods

1PublicChoices

1)Apublicchoiceis

A)adecisionthataffectsoneperson.

B)adecisionthataffectsnoone.

C)adecisionmadeinpublic

D)adecisionthataffectsaentiresociety.

Answer:D

Topic:PublicChoiceTheory

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

2)Whengovernmentactionleadstoinefficiencyitisknownas

A)governmentfailure

B)governmentasusual

C)lackofgovernmenttrust

D)politics

Answer:A

Topic:PublicChoiceTheory

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

3)Governmentfailure,whengovernmentactionsleadtoinefficiency,canresultineither

A)overprovision.

B)underprovision.

C)bothAandB

D)neitherAnorB

Answer:C

Topic:PublicChoiceTheory

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

4)ThepoliticalmarketplacerequiresallEXCEPT

A)diplomats

B)firms

C)voters

D)politicians

Answer:A

Topic:PublicChoiceTheory

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

5)Governmentsexistto

A)maintainpropertyrights

B)providenon-marketmechanismsforallocatingscarceresources

C)implementarrangementsthatredistributewealthandincome

D)alloftheabove

Answer:D

Topic:PublicChoiceTheory

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

6)Inthepoliticalmarketplace,votersdoallofthefollowingEXCEPT

A)benefitfrompublicgoodsandservices.

B)paysometaxes.

C)vote.

D)evaluatepolicyproposalsofbureaucrats.

Answer:D

Topic:PublicChoiceTheory

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

7)Inthepoliticalmarketplace,firmsdoallofthefollowingEXCEPT

A)vote.

B)paytaxes.

C)evaluatepolicyproposalsofpoliticians.

D)benefitfrompublicgoodsandservices.

Answer:A

Topic:PublicChoiceTheory

Skill:Recognition

Questionhistory:NewIOthedition

AACSB:ReflectiveThinking

8)Apoliticalequilibriumcanneverbereachedwithoutvoters,firms,politiciansand.

A)bureaucrats

B)publiccosts

C)indifferencecurves

D)marketprices

Answer:A

Topic:PublicChoiceTheory

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

9)Agoodorserviceoraresourceisnonexcludableif

A)itispossibletopreventsomeonefromenjoyingitsbenefits.

B)itisnotpossibletopreventsomeonefrombenefitingfromit.

C)itsusebyonepersondecreasesthequantityavailableforsomeoneelse.

D)itsusebyonepersondoesnotdecreasethequantityavailableforsomeoneelse.

Answer:B

Topic:Nonexcludable

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

10)Ifitisimpossibletopreventsomeonefrombenefitingfromagoodregardlessofwhetheror

notthepersonpaidforit,thenthegoodis

A)nonrival.

B)rival.

C)nonexcludable.

D)excludable.

Answer:C

Topic:Nonexcludable

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

11)Ifitisimpossibleorverycostlytopreventsomeonefrombenefitingfromagoodevenifthe

persondoesnotpayforit,thegoodis

A)nonrival.

B)nonexcludable.

C)pure.

D)rival.

Answer:B

Topic:Nonexcludable

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

12)EducationataprivateuniversityisNOTapublicgoodbecauseitis

A)nonrival.

B)excludable.

C)bothnonrivalandnonexcludable.

D)Noneoftheaboveanswersiscorrect.

Answer:B

Topic:Nonexcludable

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

13)Ifitpossibletopreventapersonfromenjoyingthebenefitsofagoodunlessthepersonpays

forthegood,thegoodis

A)rival.

B)excludable.

C)pure.

D)free.

Answer:B

Topic:Excludable

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

14)Agoodorserviceoraresourceisexcludableif

A)itispossibletopreventsomeonefromenjoyingitsbenefits.

B)itisnotpossibletopreventsomeonefromenjoyingitsbenefits.

C)itsusebyonepersondecreasesthequantityavailableforsomeoneelse.

D)itsusebyonepersondoesnotdecreasethequantityavailableforsomeoneelse.

Answer:A

Topic:Excludable

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

15)Agoodorserviceoraresourceisnonrivalif

A)itispossibletopreventsomeonefromenjoyingitsbenefits.

B)itisnotpossibletopreventsomeonefromenjoyingitsbenefits.

C)itsusebyonepersondecreasesthequantityavailableforsomeoneelse.

D)itsusebyonepersondoesnotdecreasethequantityavailableforsomeoneelse.

Answer:D

Topic:Nonrival

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

16)Foragoodtobenonrival,then

A)oneperson'sconsumptionofthatgooddoesnotdecreaseanotherperson'sconsumptionof

thatgood.

B)apersoncannotbepreventedfromconsumingthatgoodevenifheorshedidnotpayforit.

C)apersoniswillingtopayanypricetoensurethattheproductisavailable.

D)apersonisnotwillingtopayforthegoodbecauseevenwithoutpayingforit,thepersoncan

consumethegoodanyway.

Answer:A

Topic:Nonrival

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

17)Iftheconsumptionofagoodorservicebyonepersondoesnotdecreasethequantity

availableforanotherperson,thegoodorserviceis

A)nonrival.

B)nonexcludable.

C)pure.

D)free.

Answer:A

Topic:Nonrival

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

18)IftheconsumptionofGoodAbyonepersondoesnotdecreasethequantityofGoodA

availableforanotherperson'sconsumption,thenthegoodissaidtobe

A)nonrival.

B)rival.

C)nonexcludable.

D)excludable.

Answer:A

Topic:Nonrival

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

19)IfIincreasemyconsumptionofagoodandthishasnoimpactthequantityyoucanconsume

ofthesamegood,thenthisgoodis

A)nonrival.

B)nonexclusive.

C)bothnonrivalandnonexclusive.

D)afreegood.

Answer:A

Topic:Nonrival

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

20)WhichofthefollowingistheBESTexampleofagoodthatisnonrivalandexcludable?

A)acanofMountainDew

B)fishintheocean

C)cabletelevision

D)nationaldefense

Answer:C

Topic:Nonrival

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

21)Amovieshownonapay-per-viewcablestationisanexampleof

A)anexcludableandrivalgood.

B)anonexcludableandrivalgood.

C)anexcludableandnonrivalgood.

D)anonexcludableandnonrivalgood.

Answer:C

Topic:Nonrival

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

22)Iftheconsumptionofagooddecreasesthequantityavailableforanotherperson,thegoodis

A)rival.

B)excludable.

C)pure.

D)free.

Answer:A

Topic:Rival

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

23)Agoodorserviceoraresourceisrivalif

A)itispossibletopreventsomeonefromenjoyingitsbenefits.

B)itisnotpossibletopreventsomeonefromenjoyingitsbenefits.

C)itsusebyonepersondecreasesthequantityavailableforsomeoneelse.

D)itsusebyonepersondoesnotdecreasethequantityavailableforsomeoneelse.

Answer:C

Topic:Rival

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

24)Foodisanexampleofagood.

A)nonrivalandnonexcludable

B)rivalandexcludable

C)nonrivalandexcludable

D)rivalandnonexcludable

Answer:B

Topic:RivalandExcludable

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

25)Privategoodsarethoseforwhichconsumptionis

A)rivalandexcludable.

B)rivalandnonexcludable.

C)nonrivalandexcludable.

D)nonrivalandnonexcludable.

Answer:A

Topic:PrivateGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

26)Aprivategoodisand.

A)rival;excludable

B)nonrival;excludable

C)rival;nonexcludable

D)nonrival;nonexcludable

Answer:A

Topic:PrivateGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

27)Whenconsumptionisrivalandexcludable,theproductisa

A)publicgood.

B)privategood.

C)mixedgood.

D)servicenotagood.

Answer:B

Topic:PrivateGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

28)WhichofthefollowingistheBESTexampleofaprivategood?

A)acanofMountainDew

B)fishintheocean

C)cabletelevision

D)nationaldefense

Answer:A

Topic:PrivateGoods

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

29)WhichofthefollowingistheBESTexampleofaprivategood?

A)ahouse

B)abridgeduringrushhour

C)airtrafficcontrol

D)fishintheocean

Answer:A

Topic:PrivateGoods

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

30)Publicgoodsarethoseforwhich

A)individualswhodonotpaycanbeexcludedfromconsumingthegood.

B)individualswhodonotpaycannotbeexcludedfromconsumingthegood.

C)externalcostsexist.

D)noexternalcostsexist.

Answer:B

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

31)Whenconsumptionofagoodisnonrivalandnonexcludable,thegoodisa

A)publicgood.

B)privategood.

C)mixedgood.

D)service.

Answer:A

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

32)Goodsthatarenonrivalandnonexcludablearecalled

A)externalgoods.

B)publicgoods.

C)privategoods.

D)freegoods.

Answer:B

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

33)Whichofthefollowingisanecessarycharacteristicofapublicgood?Thegoodis

A)excludable.

B)nonrival.

C)nonexcludable.

D)BothanswersBandCarecorrect.

Answer:D

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

34)Nonrivalryisafeatureof

A)goodsbutnotservices.

B)allnonexcludablegoods.

C)excludablegoods.

D)publicgoods.

Answer:D

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

35)Nonexcludabilityisafeatureof

A)goodsbutnotservices.

B)allnonrivalgoods.

C)goodswithanexternalcost.

D)publicgoods.

Answer:D

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

36)Apublicgoodisand.

A)rival;excludable

B)nonrival;excludable

C)rival;nonexcludable

D)nonrival;nonexcludable

Answer:D

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

37)Publicgoodsare

I)nonexcludable

II)nonrival

A)Ionly

B)IIonly

C)bothIandII

D)neitherInorII

Answer:C

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

38)Whatarethetwofeaturesofapublicgood?

A)nonrivalandexcludable

B)nonrivalandnonexcludable

C)rivalandexcludable

D)rivalandnonexcludable

Answer:B

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

39)Agoodwhichisnonrivalandnonexcludableis

A)apublicgood.

B)aprivategood.

C)asocialgood.

D)anexternality.

Answer:A

Topic:PublicGoods

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

40)WhichofthefollowingistheBESTexampleofapublicgood?

A)acanofMountainDew

B)fishintheocean

C)cabletelevision

D)nationaldefense

Answer:D

Topic:PublicGoods

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

41)WhichofthefollowingistheBESTexampleapublicgood?

A)aparkingspace

B)acar

C)astopsign

D)atollroad

Answer:C

Topic:PublicGoods

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

42)WhichofthefollowingistheBESTexampleofapublicgood?

A)publictransportationbybus

B)cleanair

C)communityswimmingpoolsforwhichtheusermustpayafee

D)postalservices

Answer:B

Topic:PublicGoods

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

43)WhichofthefollowingistheBESTexampleofapublicgood?

A)ahouse

B)theInternet

C)FourthofJulyfireworks

D)fishintheocean

Answer:C

Topic:PublicGoods

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

44)Anexampleofapublicgoodis

A)nationaldefenseservices.

B)aFordtruck.

C)aloafofbread.

D)ahomecomputer.

Answer:A

Topic:PublicGoods

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

45)Nationaldefenseisanexampleofa.

A)publicgood

B)naturalmonopolygood

C)commonresource

D)privategood

Answer:A

Topic:PublicGoods

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

46)AmuseumisNOTapublicgoodif

A)therecanbenocongestion.

B)themuseumreceivesdonationsfrommembersofthepublic.

C)anentryfeeischargedandpeoplearedeniedentryiftheydonotpay.

D)thegeneralpublictypicallydoesnotgotothemuseum.

Answer:C

Topic:PublicGoods

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

47)Anuncrowdedtollroadisbecauseitis.

A)apublicgood;bothnonrivalandnonexcludable

B)notapublicgood;nonrivalbutexcludable

C)notapublicgood;nonexcludablebutrival

D)notapublicgood;bothrivalandexcludable

Answer:B

Topic:PublicGoods

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

48)Acommonresourceisand.

A)rival;excludable

B)nonrival;excludable

C)rival;nonexcludable

D)nonrival;nonexcludable

Answer:C

Topic:CommonResource

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

49)Whichofthefollowingislikelytobenonexcludablebutrival?

A)walkingalongacrowdedhikingtrail

B)watchingcableTV

C)viewingflowersalongthehighway

D)listeningtoalocalradiostation

Answer:A

Topic:CommonResource

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

50)Aschooloftunaswimmingintheoceanis

A)nonexcludableandrival.

B)excludableandrival.

C)nonexcludableandnonrival.

D)excludableandnonrival.

Answer:A

Topic:CommonResource

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

51)WhichofthefollowingistheBESTexampleofacommonresource?

A)ahouse

B)theInternet

C)airtrafficcontrol

D)fishintheocean

Answer:D

Topic:CommonResource

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

52)WhichofthefollowingistheBESTexampleofacommonresource?

A)acanofMountainDew

B)fishintheocean

C)cabletelevision

D)nationaldefense

Answer:B

Topic:CommonResource

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

53)Naturalmonopoliesareand.

A)rival;excludable

B)nonrival;excludable

C)rival;nonexcludable

D)nonrival;nonexcludable

Answer:B

Topic:NaturalMonopoly

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

54)Anexampleofanaturalmonopolyis

A)ahouse.

B)theInternet.

C)airtrafficcontrol.

D)fishintheocean.

Answer:B

Topic:NaturalMonopoly

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

55)Anexternalitycanbea

A)costorabenefit.

B)benefitbutnotacost.

C)costbutnotabenefit.

D)marginalcostbutnotatotalcost.

Answer:A

Topic:Externalities,Definition

Skill:Recognition

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

56)Anexternalityoccurswhen

A)thecostsofproducingagoodarepaidentirelybytheproducer.

B)someofthecostsofproducingagoodarepaidbysomeoneotherthantheproducer.

C)themarginalsocialcostofanactivityincreasesasthatactivityisincreased.

D)BothanswersAandCarecorrect.

Answer:B

Topic:Externalities,Definition

Skill:Recognition

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

57)Theexternalbenefitofagood

A)equalsitsconsumersurplus.

B)equalsitsproducersurplus.

C)equalsitstotalsurplus.

D)isabenefitfromthegoodfallingonpeoplewhoarenottheconsumersofthegood.

Answer:D

Topic:Externalities,Definition

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

58)Acostthatarisesfromtheproductionofagoodthatispaidbysomeonewhodidnot

participateintheproductioniscalled

A)afreerider.

B)anexternality.

C)rentseeking.

D)apublicfailure.

Answer:B

Topic:Externalities,Definition

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

59)WhichofthefollowingdoesNOTcontainanexternality?

A)Isellyouanicecreamandyoudripitalloverthepersonsittingnexttoyou.

B)Isellyouanicecreamanditgivesyouaheadache.

C)Isellyouanicecreamandyoushareitwithyourfriend.

D)Igiveyouanicecreamandyoushareitwithafriend.

Answer:B

Topic:Externalities,Definition

Skill:Conceptual

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

60)Anexampleofanactivitythatgeneratesanexternalcostis

A)dumpingsoapsudsintoatroutstream.

B)nationaldefenseservices.

C)plantingflowersalonganinterstatehighway.

D)eatinganapple.

Answer:A

Topic:ExternalCosts

Skill:Conceptual

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

61)Anexampleofanexternalityoccurswhenachemicalfactory

A)isproducingethanolanddumpswasteinariverupstreamfromapopularfishingspot.

B)producesfertilizersthatdonothelpplantsgrow.

C)producesfertilizersthatkillplantsratherthanfeedthem.

D)overworksitsemployees.

Answer:A

Topic:ExternalCosts

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

62)Whenpeopledecoratetheexteriorsoftheirhomeswithcoloredlights,theycreate

forthemotoristswhopassby.

A)anexternalbenefit

B)acompetitivegood

C)apublicgood

D)anexcludablegood

Answer:A

Topic:ExternalBenefits

Skill:Conceptual

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

63)Whichofthefollowingepisodeswouldmostlikelycontainanexternality?

A)Youcannotaffordtobuygroceries.

B)Youdecidetogrowyourownvegetablesinyourbackyardwherenooneelsecanseethem.

C)Youdecidetogrowflowersinyourfrontyardwhereeveryoneelsecanseethem.

D)Youeatallthevegetablesyougrowyourself.

Answer:C

Topic:ExternalBenefits

Skill:Conceptual

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

64)Inwhichofthefollowingmarketsareexternalbenefitsmostlikelytoexist?

A)Inthemarketforgasoline

B)Inthemarketforballpens

C)Inthemarketforflushots

D)Inthemarketforcigarettes

Answer:C

Topic:ExternalBenefits

Skill:Conceptual

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

65)Whichofthefollowingillustratestheconceptofexternalbenefit?

A)Goodweatherincreasesthesizeofthewheatcrop.

B)Anewpesticideincreasesthesizeofthewheatcrop.

C)Agardenerenjoyshisflowers.

D)Neighborsenjoyagardener'sflowers.

Answer:D

Topic:ExternalBenefits

Skill:Conceptual

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

66)Beautificationofthenationalhighwaysthroughtheplantingofshrubsandwildflowerswill

A)beprofitableforaprivatelandscapingcompanybecausetheycanchargepassingdrivers.

B)benefitevenpeoplewhodonothelppay.

C)provideaflowofservicesthatarerivalinconsumption.

D)provideaflowofservicesthatinvolveexcludableconsumption.

Answer:B

Topic:ExternalBenefits

Skill:Conceptual

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

67)Totwohunters,adeerrunninginaforestis

A)nonrivalandnonexcludable

B)nonrivalandexcludable

C)rivalandnonexcludable

D)rivalandexcludable

Answer:C

Topic:StudyGuideQuestion,RivalandNonexcludable

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

68)Whichofthefollowingisrivalandexcludable?

A)Apublicgood

B)Anaturalmonopoly

C)Aprivategood

D)Acommonresource

Answer:C

Topic:StudyGuideQuestion,PrivateGood

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

69)Anexampleofagoodthatisbothrivalandexcludableis

A)thedefenseservicesprovidedbyanewstealthbomber.

B)apairofpants.

C)abeautifulsunset.

D)anuncrowdedthemeparksuchasWaltDisneyWorld.

Answer:B

Topic:StudyGuideQuestion,PrivateGood

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

70)Anexternalitycanbeacostorbenefitarisingfromtheproductionofagoodthatfallsupon

A)consumersbutnotproducers.

B)producersbutnotconsumers.

C)boththeconsumerandtheproducer.

D)someoneotherthantheconsumerorproducer.

Answer:D

Topic:StudyGuideQuestion,Externality

Skill:Recognition

Questionhistory:Previousedition,Chapter16

AACSB:ReflectiveThinking

2ProvidingPublicGoods

1)Afreeriderissomeonewho

A)createsanexternalbenefit.

B)isirrational.

C)consumesonlythegoodsheorshepaysfor.

D)enjoysthebenefitsofagoodwithoutpayingforit.

Answer:D

Topic:TheFree-RiderProblem

Skill:Recognition

Questionhistory:Modifiedl()thedition

AACSB:ReflectiveThinking

2)Thefree-riderproblemistheabsenceofanincentivefor

A)firmstoproducepublicgoods.

B)peopletousecommonresources.

C)peopletopayforwhattheyconsume.

D)peopletovote.

Answer:C

Topic:TheFree-RiderProblem

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

3)Afreeriderissomeonewho

A)paysforagoodandthendoesnotconsumethegood.

B)consumesagoodwithoutpayingforit.

C)paysthedollarvaluethatheorsheplacesonagivenamountofapublicgood.

D)paysthemaximumamountthatheorsheiswillingtopayforthegood.

Answer:B

Topic:TheFree-RiderProblem

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

4)Thefree-riderproblemariseswhenconsumptionofagoodis

A)rival.

B)excludable.

C)nonrivalbutexcludable.

D)nonexcludable.

Answer:D

Topic:TheFree-RiderProblem

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

5)Freeriding

A)ispossibleiftheconsumptionofagoodischaracterizedbyexcludability.

B)ispossibleiftheconsumptionofagoodischaracterizedbynonexcludability.

C)ischaracteristicofprivategoods.

D)occurswhenconsumerspaytoomuchforservicesprovidedbygovernment.

Answer:B

Topic:TheFree-RiderProblem

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

6)Afree-riderproblemoccurswhenthe

A)goodisexcludable.

B)goodisofferedatnocharge.

C)goodisrival.

D)goodisnonexcludable.

Answer:D

Topic:TheFree-RiderProblem

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

7)Afreeriderproblemiscreatedby

A)publicgoods.

B)commonresources.

C)privategoods.

D)naturalmonopolies.

Answer:A

Topic:TheFree-RiderProblem

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

8)Afree-riderproblemexistsif

A)thoseconsumingthegoodpaymorethanthecostofprovidingthegoodsothattheproducer's

profitsincrease("freeride")asaresultoftheoverpayment.

B)thoseconsumingthegoodpaynothingforit.

C)twoconsumerscanjointlyconsumeagood,whichlowersthepriceperperson.

D)afirmcanobtaintechnologyatafairprice.

Answer:B

Topic:TheFree-RiderProblem

Skill:Recognition

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

9)Becauseofthefree-riderproblem,.

A)thereisanefficientallocationofresourcesforcommonresources

B)privateprovisionleadstotheproductionofmorethantheefficientquantityofapublicgood

C)privateprovisionleadstotheproductionoflessthantheefficientquantityofapublicgood

D)thepublicusestoolittleofacommonresource

Answer:C

Topic:TheFree-RiderProblem

Skill:Conceptual

Questionhistory:Previousedition,Chapter17

AACSB:ReflectiveThinking

10)Thefree-riderproblemistheinabilityofprivatemarketstoachievetheefficientlevelof

productionof

A)rivalgoods.

B)excludablegoods.

C)publicgoods.

D)privategoods.

Answer:C

Topic:TheFree-RiderProblem

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

11)Publicgoodscreatea