1) Which of the following statements about public goods is true? Note that I am not asking you to question whether or not these goods are rival or excludable. Taking what each statement says about rivalry/excludability as given, which of these statements is true? (Select all that apply)

Group of answer choices

a) Cable TV is a pure public good because my enjoyment of cable TV does not prevent anyone else from watching it (non-rival).

b) Cable TV is an impure public good because my enjoyment of cable TV does not prevent anyone else from watching it (non-rival), but it is possible to restrict access to cable TV (excludable).

c) Fresh air is a pure public good because its consumption by one individual does not prevent consumption by others (non-rival) and it is non-excludable.

d) The stock of fish in the sea is a public good because it is non-excludable.

2) Which of the following statements is true?

a) In the human capital model, education has positive private returns but in the screening model, education has no private returns.

b) In the human capital model, education has positive social returns but in the screening model, education may not have positive social returns.

c) If the human capital model of education holds, the government should subsidize education, but not if the screening model holds.

d) David Card in "Education Matters" argues that there is more evidence in favor of the screening model than the human capital model of education

3) A simple comparison of areas with more knowledge of BPOs and areas with less knowledge of BPOs may not tell us thecausalimpact of the program because of selection bias. That is, education outcomes of individuals in areas with more knowledge of BPOs may be different from individuals in areas with less knowledge, even if they lived elsewhere. Which of these are examples of positive selection bias? Would they lead us to under/ overestimate the impact of knowledge of BPO job opportunities on educational outcomes? (Select all that apply)

a) Individuals in cities have better knowledge of BPOs than in rural villages. Individuals who live in cities also tend to be children of parents with higher education, who in turn believe in educating their children; impact of BPO knowledge would be overestimated.

b) Individuals in cities have better knowledge of BPOs than in rural villages. Families in rural areas need children's labor to work the agricultural fields and their opportunity cost of education is higher; impact of BPO knowledge would be overestimated.

c) Individuals in rural areas have better knowledge of BPOs than in urban areas. Families in rural areas need children's labor to work the agricultural fields and their opportunity cost of education is higher; impact of BPO knowledge would be underestimated.