Public Goods MCQs

Option A: excludable

Option B: a common resource

Option C: a public goods

Option D: rival

Correct Answer: excludable ✔

Option A: a firework displays

Option B: national defense

Option C: iron one

Option D: a national park

Correct Answer: a national park ✔

Option A: an excludable good.

Option B: a private good

Option C: a common resource

Option D: a public good.

Correct Answer: a common resource ✔

Option A: rival good

Option B: public good

Option C: private good

Option D: common resource

Correct Answer: public good ✔

Option A: receives the benefits of a good but avoids paying for it.

Option B: pays for a good but fails to receive any benefit from the good

Option C: fails to produce goods but is allowed to consume goods.

Option D: produces a good but fails to receive payment for the good

Correct Answer: receives the benefits of a good but avoids paying for it. ✔

Option A: the rivalness problem

Option B: the public goods problem

Option C: the Tragedy of the Commons.

Option D: The free-rider problem.

Correct Answer: The free-rider problem. ✔

Option A: rival but not excludable

Option B: neither rival nor excludable

Option C: not rival but excludable

Option D: both rival and excludable

Correct Answer: not rival but excludable ✔

Option A: neither rival nor excludable

Option B: rival but not excludable.

Option C: both rival but excludable

Option D: not rival but excludable

Correct Answer: neither rival nor excludable ✔

Option A: excess baggage

Option B: a free rider

Option C: a costly rider

Option D: a common resource

Correct Answer: a free rider ✔

Option A: a good produced by a natural monopoly

Option B: a private good

Option C: a public good

Option D: a common resource

Correct Answer: a private good ✔

Option A: government regulation

Option B: that prices are not low enough so firms over produce

Option C: that prices are not high enough, so people overconsume

Option D: that property rights have not been well established

Correct Answer: that property rights have not been well established ✔

Option A: Grant right of the clean air to citizens so that firms must purchase the right to pollute

Option B: Auctions off pollution permits.

Option C: Regulate the amount of pollutants that firms can put in the air

Option D: all of these answers

Correct Answer: all of these answers ✔

Option A: common resources are overconsumed

Option B: public goods are underproduced

Option C: private goods are under consumed

Option D: natural monopolies overproduce goods.

Correct Answer: common resources are overconsumed ✔

Option A: there are no benefits to the public since a public good is not excludable

Option B: the benefits are infinite because a public good is not rival and an infinite amount of people can consume it at the same time

Option C: one can never place a value on human life or the environment

Option D: respondents to naires have little incentive to tell the truth.

Correct Answer: respondents to naires have little incentive to tell the truth. ✔

Option A: Rs 150 or more

Option B: Rs 500,000 or more

Option C: Rs50,000 or more

Option D: Rs500 or more

Correct Answer: Rs 500,000 or more ✔

Option A: hot dogs at a picnic

Option B: Whales in the ocean

Option C: national defense

Option D: apples on a tree in a public park

Correct Answer: national defense ✔

Option A: it is efficient for the government to tax the resident €2,000 each and repair the road

Option B: It is efficient for each neighbour to pay €3,000 to repair the section of street in front of his/her home

Option C: None of these answers are true

Option D: it is not efficient to have the street repaired

Correct Answer: it is efficient for the government to tax the resident €2,000 each and repair the road ✔

Option A: not rival but excludable

Option B: both rival and excludable

Option C: rival but not excludable

Option D: neither rival nor excludable

Correct Answer: rival but not excludable ✔

Option A: rival but not excludable

Option B: not rival but excludable

Option C: both rival excludable

Option D: neither rival nor excludable

Correct Answer: both rival excludable ✔

Option A: rival

Option B: a good produced by a natural monopoly

Option C: a common resource

Option D: excludable

Correct Answer: rival ✔