Public Goods and Tragedy of the Commons

A public good is

1 rival

2 nonrival

3 excludable

4 nonexcludable

• 1 and 3

• 1 and 4

• 2 and 3

• 2 and 4

• 4 only

Which of the following is NOT an example of a public good?

• Fireworks display

• Public Transportation

• National Defense

• Lighthouse

• None of the above

Which of the following goods is nonexcludable?

• city bus

• toll bridge

• lighthouse

• art museum

• all of the above

The free rider problem for a public good means that

• the good is rival

• the good is excludable

• the market produces more than the efficient quantity

• the market produces less that the efficient quantity

• the market produces the efficient quantity

The tragedy of the commons is the absence of incentives to

• reduce marginal cost of common access resources

• prevent underuse of common access resources

• prevent overuse of common access resources

• discover new common access resources

• export wool in sixteenth-century England

Which of the following is an example of a private good?

• Apples

• Park Bench

• Netflix

• School WiFi

• all of the above

The excludability feature of goods leads to the free-rider problem.

• True

• False

A movie you watch in a mostly empty theatre is both nonrival and nonexcludable

• True

• False

The assigning of property rights help with the problem associated with commonly held resources (common access resources).

• True

• False

What is the free rider problem?

• Reaping all the benefits without contributing

• Scarcity even when you pay for a good

• All of the above

• None of the above