Which of the following statements is (are) correct?
(x) Both public goods and club goods are nonrivalrous in
consumption but club goods are excludable and public goods are
nonexcludable and both common resources and private goods are
rivalrous in consumption but private goods are excludable and
common resources are nonexcludable.
(y) Ralph owns 10 acres of beautiful wooded land. Ralph donates the
land to the state with the understanding that the land will be used
as a state park. This state park is large enough that it is not
congested. It is an example of a good that is neither rivalrous in
consumption nor excludable.
(z) A congested city street is a common resource because it is
rivalous and nonexcludable and police protection is a club good
because police protection is usually nonrivalous and
excludable.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only
Which of the following statements is (are) correct?
(x) The U.S. patent system provides property rights protection for
individuals who pursue research and, as a result, makes technical
knowledge excludable.
(y) Government subsidizes basic research because the social benefit
of additional knowledge is perceived to be greater than the cost of
subsidies.
(z) Government agencies subsidize basic research because the
private market devotes too few resources to basic research. Too few
resources are devoted to the creation of knowledge because profit
seeking firms tend to free-ride on the knowledge that others have
developed.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only
Anne, Barney, and Cora all enjoy looking at flowers blooming in
gardens in their neighborhood. The neighborhood association is
considering planting a flower garden around the sign at the
entrance to the neighborhood. Anne values the garden at $35, Barney
at $25, and Cora at $50. The flowers and labor for the garden cost
$100. What should the neighborhood association do?
A. Plant the garden because people like flowers.
B. Plant the garden because the benefits outweigh the costs.
C. Do not plant the garden because the costs outweigh the
benefits.
D. Do not plant the garden in order to prevent the Tragedy of the
Commons problem of overuse.
E. It is impossible to determine the best choice because the
flowers will die as the weather turns colder.
Hi! Welcome to Chegg!
Due to presence of Chegg policy, I am answering one question.
1. Which of the following statements is (are) correct?
(x) Both public goods and club goods are nonrivalrous in
consumption but club goods are excludable and public goods are
nonexcludable and both common resources and private goods are
rivalrous in consumption but private goods are excludable and
common resources are nonexcludable.
(y) Ralph owns 10 acres of beautiful wooded land. Ralph donates the
land to the state with the understanding that the land will be used
as a state park. This state park is large enough that it is not
congested. It is an example of a good that is neither rivalrous in
consumption nor excludable.
(z) A congested city street is a common resource because it is
rivalous and nonexcludable and police protection is a club good
because police protection is usually nonrivalous and
excludable.
Ans: B. (x) and (y) only
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