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Chapter_11_questions

Chapter_11_questions

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Published by: Ezechi Papaz Uche on Feb 16, 2011
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Name _______________________ Date________ Mod______ AP Econ Mr.

Marvin Chapter 11 questions
_____1. a. b. c. d. Government policy can potentially raise economic well-being in all markets for goods and services. in economic models, but not in reality. when a good does not have a price attached to it. never.

_____2. When goods do not have a price, which of the following primarily ensures that the good is produced? a. buyers b. sellers c. government d. the market _____3. When a good is excludable, a. one person's use of the good diminishes another person's ability to use it. b. people can be prevented from using the good. c. no more than one person can use the good at the same time. d. everyone will be excluded from using the good. _____4. Which of the following would be considered a private good? a. national defense b. a public beach c. local cable television service d. a bottle of natural mineral water _____5. Which of the following goods is rival in consumption and excludable? a. a slice of pizza b. cable TV service c. a sunset d. national defense _____6. The Great Lakes are a. private goods. b. natural monopolies. c. common resources. d. public goods. _____7.A streetlight is a a. private good. b. natural monopoly. c. common resource. d. public good. _____8.Labor is a a. b. c. d. _____9. a. b. c. d. private good. natural monopoly. common resource. public good. Because public goods are excludable, people have an incentive to be free riders. excludable, people do not have an incentive to be free riders. not excludable, people have an incentive to be free riders. not excludable, people do not have an incentive to be free riders.

Marvin Chapter 11 questions .Name _______________________ Date________ Mod______ AP Econ Mr.

monetary analysis. An overcrowded beach is an example of a. d. If the government decides to build a new highway.000 is greater than the cost. b. _____12. d. Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. d. b. .000. excludable. c. d. a positive externality. The study is called a a. _____16. Private companies will invest in medical research if a. b. an economically unfair allocation of resources. but only common resources are not rival in consumption. c. d. is best accomplished by charities. be limited to a small number of units of production. d. over time. _____13. but only public goods are not excludable. not install the light because the expected benefit of $4. To increase safety at a bad intersection. In this case. a nearby port authority cannot avoid paying fees to the lighthouse owner. Marvin Chapter 11 questions _____10. each farmer has a sufficient incentive to conserve the water. an environmentally inefficient allocation of resources. and the value of a human life is estimated to be $10 million.000 is greater than the cost. The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States. all passing ships are able to enjoy the benefits of the lighthouse without paying.000 is less than the cost. they will produce general knowledge. welfare analysis. _____11. install the light because the expected benefit of $40. have a free-rider problem c. c. fiscal analysis. _____17. resources would be used more efficiently if the government paid for the pumps farmers use to get the water. not install the light because the expected benefit of $15. install the light because the expected benefit of $20. cost-benefit analysis. state governments have an incentive to insure that their farmers do not overuse the water. you should a. the first step would be to conduct a study to determine the value of the project. but only common resources are not excludable. b. they will produce a specific product for which they may receive a patent. is more efficiently accomplished by the market. _____14. Neither public goods nor common resources are a. b. c. _____15. b. a Tragedy of the Commons. the aquifer is likely to be overused. c. b. Advocates of antipoverty programs claim that fighting poverty a. If the traffic light reduces the risk of fatality by 0. the owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse.000 is only equal to the cost. rival in consumption. d. should not be attempted with tax dollars. c. _____18. b. Any farmer with land above the aquifer can at present pump water out of it. is a public good. there is no government intervention in the market for medical products. the market for this good will likely a. others will benefit from their discoveries. d. b. excludable. d.Name _______________________ Date________ Mod______ AP Econ Mr. but only public goods are not rival in consumption. not exist. We might expect that a. you must decide whether to install a traffic light in your hometown at a cost of $15. rival in consumption. c. there is rarely another lighthouse nearby to provide competition.4 percent. A lighthouse is typically considered to be a public good because a. be a natural monopoly. c.

ANS: 17. ANS: B B B D D A A B A . ANS: C 3. ANS: 18. ANS: C 7. ANS: C 10. ANS: 14. ANS: 12. ANS: B 4. ANS: 16.Name _______________________ Date________ Mod______ AP Econ Mr. ANS: A 9. ANS: 11. ANS: D 8. ANS: 15. ANS: 13. Marvin Chapter 11 questions 1. ANS: D 5. ANS: C 2. ANS: A 6.

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