Chapter 11 Review Questions

Which one of the following goods is excludable?

• a city bus

• a bridge that does not charge a toll

• protection from the police force

• the atmosphere

• all of the above

Which one of the following goods is nonexcludable?

• the atmosphere

• a taxi

• an art museum

• a toll bridge

• all of the above

A common resource is

• rival and nonexcludable.

• nonrival and excludable.

• nonrival and nonexcludable.

• regulated and excludable.

• rival and excludable.

A common resource is

• excludable and either rival or nonrival.

• rival and nonexcludable.

• nonexcludable and either rival or nonrival.

• rival and either excludable or nonexcludable.

• rival and excludable.

Cable television and air-traffic control are similar to each other because both of them are

• nonexcludable.

• nonrival.

• excludable.

• rival.

• private services.

If a good is a public good,

• Any anyone can be excluded from enjoying its benefits.

• consumers pay a low price.

• no one can be excluded from enjoying its benefits.

• economies of scale exist over the entire range of output for which there is a demand.

• consumers must pay a high price to enjoy its benefits.

When a city street is congested, it is

• a public good.

• a private good.

• nonrival and excludable.

• nonrival and nonexcludable.

• a common resource.

A club good is

• A) nonrival.

• B) excludable.

• C) rival.

• D) nonexcludable.

• E) both A and B.

Although both cable television and air-traffic control are nonrival, they differ from each other because

• cable television is nonexcludable and air-traffic control is excludable.

• cable television is a public good and air-traffic control is a private good.

• cable television is excludable and air-traffic control is a public good.

• cable television is nonexcludable and air-traffic control is nonexcludable.

• cable television is a private good and air-traffic control is a public good.

When a city street is not congested, it is

• rival and nonexcludable.

• a common resource.

• a public good.

• rival and excludable.

• a private good.