4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is and . Thus, the visual appearance would b classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $61,110. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,240 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20. The benefit of the beautification initiative, as suggested by the survey, is $ Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of the beautification initiative relied on the ability of the administrators to capture the true willingness to pay of each student accurately. Which of the following scenarios would cause the survey used by the college administrators to yield misleading data on willingness to pay? Check all that apply. O An equal number of first, second, third, and fourth year students were surveyed. Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is and . Thus, the visual appearance would be classified as a public good. nonrival Suppose the college administrators estimate that the beautification initi rival ost $61,110. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,240 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20.A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is and . Thus, the visual appearance would be classified as a public good. excludable Suppose the college administrators estimate that the beautification initiative will cost $61, nonexcludable nether the initiative should be undertaken, administrators conduct a survey of the college's 2,240 students, asking each of them their wingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20.The benefit of the beautification initiative, as suggested by the survey, is $ Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. greater The calculation of the benefit of the beautification initiative relied on the ability of the administrators to capture the true will less pay of each student accurately.The benefit of the beautification initiative, as suggested by the survey, is\\:|. Because the estimated benefit is V than the cost. the college administrators; undertake the beautification initiative. The calculation of the benefit of the beautification initiative relied on the ability of the administrators to capture the true willingness to pay of each student accurately. 5. Common resources versus private goods Outdoors season is underway in Wisconsin, and Tiana and her dad are planning a weekend fishing trip. They have the choice between fishing the lake near town where anyone is allowed to fish without a permit, or they could drive a short PRIVATE distance to a brook located on a family friend's property in PROPERTY the woods. Assume throughout the problem that all fish caught in either body of water are free for those fishing to keep. The fish in the lake are considered and whereas the fish in the private brook are and . In other words, the fish in the lake are an example of , and the fish in the private brook are an example of Fishing in the lake will likely lead to because of which of the following reasons? O All fishermen will choose to fish in the brook believing that there are more fish there. Anyone can fish in the lake, and one person's fishing activity decreases the ability of someone else to fish with success. Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the lake. O All fishermen will choose to fish in the lake because of the limited access to the brook.The sh in the lake are considered I V and V whereas the sh in the private brook are other words, the sh in the lake are an example of V , and the sh in the private brook are an ex. V . Fishing in the lake will likely;r lead t V because of which of the following reasons? 0 All shermen will choose to fish in the brook believing that there are more fish there. The sh in the lake are considered V and V whereas the fish in the private brook are v and V . In other w: e lake are an example of V , and the fish in the private brook are an example of v . nonexcludable excludable I' I ' I ' Fishing in the lake will likely lead to - ich of the following reasons? 0 All fishermen will choose to fish in the brook believing that there are more fish there. The fish in the lake are considered V and V whereas the fish in the private brook are I V and V . In other words, the fish in the lake are an example of V , and the - an example of V . rival in consumption ' nonrival in consumption lead to V because of which of the following reasons? 0 All fishermen will choose to fish in the brook believing that there are more fish there. The fish in the lake are considered V and V whereas the fish in the private brook are I V and V . In other words, the fish in the lake are an example of V , and the fish in the private brook are an exam V exdudable Fishing in the lake will likelyr lead to nonexcludable V because of which of the following reasons? 0 All fishermen will choose to fish in the brook believing that there are more fish there. The sh in the lake are considered V and V whereas the sh in the private brook are V and V . In other words, the fish in the lake are an example of V , and the fish in the private brook are an example of V . a public good Fishing in the lake will likely lead to V because of which of the following reaso a common resource O All shermen will choose to fish in the brook believing that there are more fish there. a private 900d 0 Anyone can sh in the lake, and one person's shing activity decreases the ability of someone else to s a CM) 900d O Nobody will enjoy shing because of the lack of private contributions to the maintenance of the lake. The fish in the lake are considered and whereas the fish in the private brook are and . In other words, the fish in the lake are an example of , and the fish in the private brook are an example of Fishing in the lake will likely lead to a common resource because of which of the following reasons? a club good O All fishermen will choose to fish in hat there are more fish there. a public good O Anyone can fish in the lake, and tivity decreases the ability of someone else to fish with success. a private good O Nobody will enjoy fishing because contributions to the maintenance of the lake.The fish in the lake are considered and whereas the fish in the private brook are and 7 . In other words, the fish in the lake are an example of , and the fish in the private brook are an example of Fishing in the lake will likely lead to because of which of the following reasons? O All fishermen will choose t moral hazard t there are more fish there. O Anyone can fish in the lak a natural monopoly ity decreases the ability of someone else to fish with success. O Nobody will enjoy fishing ( the Tragedy of the Commons intributions to the maintenance of the lake. O All fishermen will choose to fish in the lake because of the limited access to the brook