Question
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 |
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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 |
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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 |
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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 |
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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 |
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19. | Nonexcludability generates a problem because individuals have an incentive to_____. |
| a. free ride |
| b. profit |
| c. fight |
| d. steal |
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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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