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WorksheetsModule 6.3 MCQ - MICRO - Public Goods
Total questions: 9
Worksheet time: 10mins
Which of the following types of goods are always nonrival in consumption?
public goods
private goods
common resources
inferior goods
goods provided by the government
The free-rider problem occurs in the case of
private goods.
common resources.
artificially scarce goods.
motorcycles.
all of the above.
Public goods are provided through which of the following means?
the government only
voluntary contributions only
self-interested individuals and firms only
the government and voluntary contributions only
the government, voluntary contributions, and self- interested individuals and firms
Market provision of a public good will lead to
the efficient quantity of the good and an inefficiently high price.
the efficient quantity of the good and the efficient price.
an inefficiently high quantity of the good and the efficient price.
an inefficiently low quantity of the good and an inefficiently high price.
an inefficiently high quantity of the good and an inefficiently low price.
The Pineland community has a public forest where citizens can harvest (cut down) as many trees as they desire for personal use. Which of the following would most likely worsen the overconsumption of this common resource?
a tax on each tree harvested
a government regulation that bans chainsaws in the forest
tradable licenses for tree harvesting
the assignment of property rights to the forest
an increase in the price of firewood sold in stores
A common resource is
excludable and nonrival in consumption.
excludable and rival in consumption.
nonexcludable and nonrival in consumption.
nonexcludable and rival in consumption.
a public good that is excludable.
The marginal social benefit curve for a public good is the
horizontal sum of the marginal private benefit curves of all consumers.
vertical sum of the marginal private benefit curves of all consumers.
horizontal sum of the marginal external benefit curves of all consumers.
vertical sum of the marginal external benefit curves of all consumers.
demand curve of the consumer who values the public good the most.
Sort the following into the appropriate categories
Cheese Burrito
Public Park
Paywalled Web Content
Public Weather Info
Roads during rush hour
iPhone XX
A bo'oh'o'wa'er
Netflix or Disney+ streaming content
Private Gym Access
Streetlights
The purchase of antivirus software by one person provides benefits to other people because they are less likely to receive a virus from the software purchaser.
a. Draw a correctly labeled graph showing how the market will determine the quantity of antivirus soware purchased and label that quantity QMKT .
b. Characterize the associated externality as positive or negative and consumption or production.
c. On the graph for part a:
i. Draw (as needed) and label the marginal social cost and the marginal social benefit.
ii. Label the socially optimal quantity of antivirus software QOPT .
iii. Shade and label the area that represents deadweight loss.
