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Public Goods and Collective Action

Description: This quiz is designed to evaluate your understanding of the concepts related to public goods and collective action in economics.
Number of Questions: 15
Created by:
Tags: public goods collective action externalities free riders
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Which of the following is a characteristic of a public good?

  1. Non-excludable

  2. Rivalrous

  3. Toll good

  4. Excludable


Correct Option: A
Explanation:

A public good is non-excludable, meaning that it is difficult or impossible to prevent people from consuming it, even if they do not pay for it.

What is the primary reason for the underprovision of public goods?

  1. Positive externalities

  2. Negative externalities

  3. Free riders

  4. High production costs


Correct Option: C
Explanation:

The underprovision of public goods is primarily due to the presence of free riders, who benefit from the good without contributing to its provision.

Which of the following is an example of a public good?

  1. National defense

  2. Private car

  3. Restaurant meal

  4. Personal computer


Correct Option: A
Explanation:

National defense is a public good because it is non-excludable and non-rivalrous, meaning that everyone benefits from it and no one can be excluded from its consumption.

What is the term used to describe the situation where individuals benefit from a public good without contributing to its provision?

  1. Free riding

  2. Tragedy of the commons

  3. Externality

  4. Public good paradox


Correct Option: A
Explanation:

Free riding is the term used to describe the situation where individuals benefit from a public good without contributing to its provision.

Which of the following is a potential solution to the problem of free riding in the provision of public goods?

  1. Privatization

  2. Government provision

  3. Voluntary contributions

  4. All of the above


Correct Option: D
Explanation:

All of the above options can be potential solutions to the problem of free riding in the provision of public goods.

What is the term used to describe the situation where the consumption of a good or service by one individual imposes a cost on others?

  1. Negative externality

  2. Positive externality

  3. Free riding

  4. Tragedy of the commons


Correct Option: A
Explanation:

A negative externality is a situation where the consumption of a good or service by one individual imposes a cost on others.

Which of the following is an example of a negative externality?

  1. Education

  2. Pollution

  3. Public health

  4. National defense


Correct Option: B
Explanation:

Pollution is an example of a negative externality because it imposes a cost on others, such as health problems or environmental damage.

What is the term used to describe the situation where the consumption of a good or service by one individual generates a benefit for others?

  1. Positive externality

  2. Negative externality

  3. Free riding

  4. Tragedy of the commons


Correct Option: A
Explanation:

A positive externality is a situation where the consumption of a good or service by one individual generates a benefit for others.

Which of the following is an example of a positive externality?

  1. Traffic congestion

  2. Education

  3. Pollution

  4. Crime


Correct Option: B
Explanation:

Education is an example of a positive externality because it generates benefits for society as a whole, such as increased productivity and social mobility.

What is the term used to describe the situation where a common resource is overused because individuals have an incentive to use it excessively?

  1. Tragedy of the commons

  2. Free riding

  3. Negative externality

  4. Positive externality


Correct Option: A
Explanation:

The tragedy of the commons is a situation where a common resource is overused because individuals have an incentive to use it excessively.

Which of the following is an example of the tragedy of the commons?

  1. Overfishing

  2. Pollution

  3. Traffic congestion

  4. Climate change


Correct Option: A
Explanation:

Overfishing is an example of the tragedy of the commons because each individual fisherman has an incentive to catch as many fish as possible, even if it means depleting the fish population.

What is the term used to describe the situation where individuals cooperate to provide a public good or service, even though they could benefit from free riding?

  1. Collective action

  2. Free riding

  3. Tragedy of the commons

  4. Negative externality


Correct Option: A
Explanation:

Collective action is the situation where individuals cooperate to provide a public good or service, even though they could benefit from free riding.

Which of the following is an example of collective action?

  1. Paying taxes

  2. Voting

  3. Volunteering for a charity

  4. All of the above


Correct Option: D
Explanation:

All of the above options are examples of collective action, where individuals cooperate to provide a public good or service.

What are some of the challenges associated with collective action?

  1. Free riding

  2. Lack of coordination

  3. Difficulty in reaching a consensus

  4. All of the above


Correct Option: D
Explanation:

All of the above options are challenges associated with collective action.

What are some of the mechanisms that can be used to promote collective action?

  1. Government intervention

  2. Social norms

  3. Education and awareness

  4. All of the above


Correct Option: D
Explanation:

All of the above options can be used to promote collective action.

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