Question

1. If you can prevent someone from consuming a​ good, that good is called

A. nonrival.

B. rival.

C. excludable.

D. a public good.

E. nonexcludable.

2. To​ hunters, deer in the woods are an example of a

A. private good.

B. natural monopoly.

C. public good.

D. common resource.

E. public resource.

3. _________ are public goods. If bureaucrats want to ensure the efficient quantity is​ produced, _______.

A. ​Factories; marginal social cost must be greater than marginal cost.

B. Highways; marginal social benefit must be equal to marginal social cost.

C. ​Cars; marginal cost must be equal to marginal benefit.

D. U.S.​ exports; marginal cost must be greater than marginal benefit.

E. ​Life-saving drugs; marginal social benefit must be greater than marginal cost.

Answer 1

1. Option C ( Excludable)

Explanation-

A good or service is called excludable if it is possible to prevent people who are not willing to pay for the good or service.

2. Option D ( Common Resource)

Explanation-

Common Resource is the resource that provides users with benefits but which nobody in particular owns. Common Resource face problems of congestion because they are rival.

3. Option B

Explanation-

Highways are public goods. If bureaucrats want to ensure the efficient quantity is​ produced marginal social benefit must be equal to marginal social cost.