#1
Which of the following best describes a public good?
A good that is non-excludable and non-rivalrous
ExplanationPublic goods are accessible to all and consumption by one doesn't diminish availability for others.
#2
What is an example of a public good?
Street lighting
ExplanationStreet lighting benefits everyone and is difficult to exclude individuals from its benefits.
#3
What is the primary mechanism through which governments finance the provision of public goods?
Income tax
ExplanationGovernments finance public goods provision primarily through taxation, notably income tax.
#4
Which concept describes the tendency of individuals to benefit from public goods without contributing to their provision?
Free rider problem
ExplanationFree riders enjoy the benefits of public goods without paying for their provision.
#5
What is a characteristic of a common-pool resource?
It is excludable and rivalrous
ExplanationCommon-pool resources are depleted when used by one individual and access can be restricted.
#6
What is the tragedy of the commons?
A situation where individuals overconsume a common resource
ExplanationOverconsumption of a shared resource leads to its depletion, harming all users.
#7
Which of the following is NOT a characteristic of public goods?
Rivalrous
ExplanationPublic goods are non-rivalrous; consumption by one doesn't reduce availability to others.
#8
What is an example of a club good?
Cable television
ExplanationClub goods are excludable but non-rivalrous, like cable TV accessible to subscribers only.
#9
What is the primary role of governance in the provision of public goods?
To enhance efficiency and effectiveness in providing public goods
ExplanationGovernance aims to ensure fair and efficient provision of public goods for societal welfare.
#10
Which approach involves the government providing a public good directly instead of relying on the market?
Government intervention
ExplanationGovernment directly intervenes to provide public goods when market mechanisms fail.
#11
Which concept suggests that the private sector may not provide public goods efficiently due to the absence of profit incentives?
Market failure
ExplanationPrivate sector fails to provide public goods due to inability to profit from their provision.
#12
What is an example of a global public good?
Clean drinking water
ExplanationClean water benefits all humanity and is not diminished by one person's use.
#13
What is the tragedy of the anticommons?
A situation where resources are underutilized due to excessive fragmentation of property rights
ExplanationResources are wasted due to over-fragmentation of ownership, hindering efficient utilization.
#14
Which theory suggests that individuals can overcome the free rider problem through voluntary agreements and cooperation?
Collective action theory
ExplanationVoluntary cooperation among individuals can mitigate free rider problems in public goods provision.
#15
Which of the following is an example of a global public bad?
Climate change
ExplanationClimate change negatively impacts all and its effects are not limited by national boundaries.