Listen to the following podcast from Planet Money on the water crisis in California a few years back (many of the issues are ongoing, but it is a great illustration of inherent problems with common resources)

Episode 640: The Bottom Of The Well : Planet Money : NPR

Question 1

In this scenario of Central Valley in CA, how would you categorize the good that households and farmers are all competing for (water): Is it rival/nonrival? Is it excludable/nonexcludable - explain your thinking using specifics from the podcast.

Group of answer choices

Rival and excludable

Rival and nonexcludable

nonrival and excludable

nonrival and nonexcludable

Question 2

Which of these important requirements for markets to function is missing in the Central Valley, CA water problem?

Group of answer choices

Consumers

Competition for the resource

Property rights

government ownership

Question 3

Consider the approaches to address the tragedy of the commonsmentioned in both the podcast and the MRU video. As presented in the podcast a group of farmers in the area of Stockton California were afraid that the government would come in and limit water use and so took action of their own.

Which type of approach is represented by the potential action of the government to come in and limit water use?

Group of answer choices

Government regulation

Norms

Private property

No answer text provided.

Question 4

Which type of approach is represented by the actions that the 500 farmers of Stockton took in organizing themselves to reduce water use themselves?

Group of answer choices

Government regulation

Norms

Private property

No answer text provided.