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14. Public goods have at least one of two characteristics. What are the two characteristics? a. collective consumption; nonexcludability b. individual consumption; nonexcludability c. collective

14.

Public goods have at least one of two characteristics. What are the two characteristics?

a. collective consumption; nonexcludability

b. individual consumption; nonexcludability

c. collective consumption; excludability

d. individual consumption; excludability

15.

Collective consumption goods are _____.

a. goods that can be consumed by additional consumers without reducing the amount available to existing consumers

b. goods that can be produced for everyone at zero marginal cost

c. goods that are produced and consumed by an entire group, such as a commune that raises its own vegetables

d. goods that once produced, can be consumed by additional consumers without reducing the amount available to existing consumers

16.

Once produced, Nonexcludable goods are _____.

a. difficult to keep employees from stealing

b. difficult to keep people from consuming without paying for them

c. difficult to keep people from consuming at any price

d. available to anyone if they want to pay for it

17.

Which of the following is not an impure public good?

a. a full movie theatre

b. a fairly congested highway

c. a swimming pool at ninety percent capacity

d. the average major league baseball game in early April

18.

A nonexcludable good _____.

a. is by definition also a collective consumption good

b. usually suffers from the free rider problem

c. will always lead to overproduction

d. is frequently illegal

19.

Nonexcludability generates a problem because individuals have an incentive to_____.

a. free ride

b. profit

c. fight

d. steal

20.

The result of a prisoners dilemma is _____.

a. individuals pursuing their own interests are acting for the group interest

b. individuals pursuing the group interest are acting against their own interests

c. individuals pursuing their own interests are acting against the group interest

d. individuals pursuing the group interest are acting for their own interest

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