Public Goods
| Description: This quiz aims to assess your understanding of public goods, their characteristics, and their role in economics. | |
| Number of Questions: 14 | |
| Created by: Aliensbrain Bot | |
| Tags: public goods economics public economics |
What is a public good?
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A good that is non-rivalrous and non-excludable.
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A good that is rivalrous and non-excludable.
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A good that is non-rivalrous and excludable.
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A good that is rivalrous and excludable.
A public good is a good that is non-rivalrous, meaning that one person's consumption of the good does not diminish another person's consumption of the same good, and non-excludable, meaning that it is impossible to prevent people from consuming the good.
Which of the following is an example of a public good?
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National defense.
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A private car.
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A restaurant meal.
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A personal computer.
National defense is a public good because it is non-rivalrous (one person's consumption of national defense does not diminish another person's consumption of national defense) and non-excludable (it is impossible to prevent people from consuming national defense).
What is the free rider problem?
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The problem that arises when people can consume a public good without paying for it.
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The problem that arises when people are forced to pay for a public good that they do not want.
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The problem that arises when the government provides too many public goods.
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The problem that arises when the government provides too few public goods.
The free rider problem arises when people can consume a public good without paying for it. This can lead to a situation where the public good is underprovided, as people are not willing to pay for a good that they can consume for free.
How can the free rider problem be solved?
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By charging people for the public good.
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By providing the public good through the government.
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By creating a system of voluntary contributions.
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By educating people about the importance of public goods.
The free rider problem can be solved by providing the public good through the government. This is because the government has the power to tax people and use the tax revenue to pay for public goods.
What is the tragedy of the commons?
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The problem that arises when a common resource is overused.
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The problem that arises when a common resource is underused.
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The problem that arises when a common resource is privatized.
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The problem that arises when a common resource is nationalized.
The tragedy of the commons is the problem that arises when a common resource is overused. This can happen when each individual has an incentive to overuse the resource, even though they know that this will lead to the resource being depleted.
Which of the following is an example of a common resource?
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A forest.
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A private car.
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A restaurant meal.
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A personal computer.
A forest is a common resource because it is non-rivalrous (one person's use of the forest does not diminish another person's use of the forest) and non-excludable (it is impossible to prevent people from using the forest).
How can the tragedy of the commons be solved?
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By privatizing the common resource.
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By nationalizing the common resource.
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By creating a system of tradable permits.
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By educating people about the importance of common resources.
The tragedy of the commons can be solved by creating a system of tradable permits. This system allows individuals to trade their rights to use the common resource, which can help to prevent the resource from being overused.
What is the difference between a public good and a private good?
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Public goods are non-rivalrous and non-excludable, while private goods are rivalrous and excludable.
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Public goods are rivalrous and non-excludable, while private goods are non-rivalrous and excludable.
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Public goods are non-rivalrous and excludable, while private goods are rivalrous and non-excludable.
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Public goods are rivalrous and excludable, while private goods are non-rivalrous and non-excludable.
Public goods are non-rivalrous and non-excludable, while private goods are rivalrous and excludable. This means that one person's consumption of a public good does not diminish another person's consumption of the same good, and it is impossible to prevent people from consuming a public good. In contrast, one person's consumption of a private good does diminish another person's consumption of the same good, and it is possible to prevent people from consuming a private good.
What are the three main characteristics of a public good?
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Non-rivalrous, non-excludable, and increasing marginal cost.
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Non-rivalrous, non-excludable, and decreasing marginal cost.
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Rivalrous, excludable, and increasing marginal cost.
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Rivalrous, excludable, and decreasing marginal cost.
The three main characteristics of a public good are non-rivalrous, non-excludable, and decreasing marginal cost. This means that one person's consumption of a public good does not diminish another person's consumption of the same good, it is impossible to prevent people from consuming a public good, and the marginal cost of providing a public good decreases as more people consume the good.
Which of the following is an example of a decreasing marginal cost good?
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A public good.
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A private good.
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A natural monopoly.
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A perfect competition good.
A public good is an example of a decreasing marginal cost good. This is because the marginal cost of providing a public good decreases as more people consume the good. This is because the fixed costs of providing the good are spread over a larger number of people.
What is the difference between a pure public good and an impure public good?
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A pure public good is non-rivalrous and non-excludable, while an impure public good is rivalrous and excludable.
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A pure public good is rivalrous and non-excludable, while an impure public good is non-rivalrous and excludable.
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A pure public good is non-rivalrous and excludable, while an impure public good is rivalrous and non-excludable.
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A pure public good is rivalrous and excludable, while an impure public good is non-rivalrous and non-excludable.
A pure public good is non-rivalrous and non-excludable, while an impure public good is rivalrous and non-excludable. This means that one person's consumption of a pure public good does not diminish another person's consumption of the same good, and it is impossible to prevent people from consuming a pure public good. In contrast, one person's consumption of an impure public good does diminish another person's consumption of the same good, and it is possible to prevent people from consuming an impure public good.
Which of the following is an example of an impure public good?
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National defense.
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A public park.
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A street light.
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A public library.
A public park is an example of an impure public good. This is because one person's use of a public park does diminish another person's use of the same park, and it is possible to prevent people from using a public park.
What is the role of government in providing public goods?
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To provide public goods that the private sector cannot or will not provide.
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To regulate the provision of public goods by the private sector.
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To subsidize the provision of public goods by the private sector.
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To tax the provision of public goods by the private sector.
The role of government in providing public goods is to provide public goods that the private sector cannot or will not provide. This is because the private sector has no incentive to provide public goods, as it cannot charge people for consuming public goods.
What are some of the challenges associated with providing public goods?
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The free rider problem.
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The tragedy of the commons.
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The difficulty of determining the optimal level of provision.
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All of the above.
The challenges associated with providing public goods include the free rider problem, the tragedy of the commons, and the difficulty of determining the optimal level of provision. The free rider problem is the problem that arises when people can consume a public good without paying for it. The tragedy of the commons is the problem that arises when a common resource is overused. The difficulty of determining the optimal level of provision is the problem that arises when it is difficult to determine how much of a public good should be provided.