#1
Which of the following best describes a public good?
Non-excludable and non-rivalrous
ExplanationPublic goods are characterized by being non-excludable (people cannot be excluded from using the good) and non-rivalrous (one person's use does not diminish its availability to others).
#2
What is a characteristic of a common resource?
Non-excludable and rivalrous
ExplanationCommon resources are non-excludable (people cannot be excluded from using the resource), but rivalrous (one person's use diminishes its availability to others).
#3
Which concept refers to the situation where individuals fail to contribute to the provision of a public good, yet still benefit from it?
Free rider problem
ExplanationThe free rider problem is the situation where individuals enjoy the benefits of a public good without contributing to its provision.
#4
What is a characteristic of a public good?
It is non-excludable and non-rivalrous.
ExplanationPublic goods are characterized by being non-excludable (people cannot be excluded) and non-rivalrous (one person's use does not affect others).
#5
What is the primary characteristic of a public good?
It is non-excludable and non-rivalrous.
ExplanationThe primary characteristic of a public good is that it is non-excludable (people cannot be excluded) and non-rivalrous (consumption does not affect availability to others).
#6
Which of the following is an example of a public good?
Street lighting
ExplanationStreet lighting is a classic example of a public good as it is non-excludable and non-rivalrous, benefiting everyone in the community.
#7
What is a free-rider problem associated with public goods?
Individuals who do not pay for a good can still benefit from it
ExplanationThe free-rider problem arises when individuals can enjoy the benefits of a public good without contributing to its costs.
#8
What is the concept of rivalry in consumption?
The rivalry between consumers for a scarce resource
ExplanationRivalry in consumption refers to the competition among consumers for a limited or scarce resource.
#9
Which of the following is NOT an example of a common resource?
Public park
ExplanationA public park is not a common resource as it is typically non-excludable and non-rivalrous, more fitting the characteristics of a public good.
#10
What is the 'free rider' problem in the context of public goods?
Consumers who consume public goods without paying for them
ExplanationThe free rider problem refers to individuals benefiting from public goods without contributing to their costs, relying on others to pay.
#11
Which management strategy is commonly used for dealing with the tragedy of the commons?
Government regulation
ExplanationThe tragedy of the commons, where shared resources are overused, can be addressed through government regulation to manage and protect the resource.
#12
What is the tragedy of the commons?
A situation where individuals overuse or deplete a shared resource
ExplanationThe tragedy of the commons occurs when individuals, acting in their self-interest, deplete or overuse a shared resource, leading to its degradation.
#13
Which economic concept explains why private markets tend to underprovide public goods?
Externalities
ExplanationExternalities, the spillover effects of economic activities on third parties, explain the underprovision of public goods by private markets.