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Copyright © 2011 Pearson Education, Inc.
Foundations of Microeconomics, 5e (Bade/Parkin)
Chapter 10 Public Goods and Public Choices
10.1 Classifying Goods and Resources
1) A good is nonexcludable if
A) only the government can produce it.
B) nobody can be excluded from enjoying the benefits of the good.
C) when you pay for the good, you are guaranteed to be the sole consumer.
D) when you consume a unit, that means there is no less for someone else.
E) it is also nonrival.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: TS
AACSB: Reflective thinking
2) If you can prevent someone from consuming a good, that good is called
A) rival.
B) nonrival.
C) excludable.
D) nonexcludable.
E) a public good.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: SB
AACSB: Reflective thinking
3) A good or resource is excludable if
A) only the government can produce them.
B) nobody can be excluded from enjoying the benefits of the good or resource.
C) when you pay for the good or resource, you are guaranteed to be the sole consumer.
D) when you consume a unit, that means there is one less for someone else.
E) it is a common resource.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: TS
AACSB: Reflective thinking
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Copyright © 2011 Pearson Education, Inc.
4) Which of the following goods is best described as nonexcludable?
A) a lighthouse
B) pay-per-view television
C) a restaurant meal
D) a college education
E) a cow grazing in a pasture
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: PH
AACSB: Reflective thinking
5) The fact that technology prevents Sam in Nevada from using the email account of Samantha
in Virginia means that email is an example of
A) a good that is nonexcludable.
B) a good that is excludable.
C) a public good.
D) the free-rider problem.
E) the tragedy of the commons.
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: JC
AACSB: Reflective thinking
6) A good is rival if
A) it has substitutes.
B) it can be consumed by many people simultaneously.
C) it is excludable.
D) consumption by one person decreases the quantity available for another person.
E) it has no complements.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: SB
AACSB: Reflective thinking
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Copyright © 2011 Pearson Education, Inc.
7) One person’s rental of the movie Transfomers 2 prevents someone else from renting it. This is
an example of
A) a public good.
B) the rival nature of consumption.
C) the nonrival nature of consumption.
D) nonexcludable goods.
E) a common resource.
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: JC
AACSB: Reflective thinking
8) A good is nonrival if,
A) only the government can produce it.
B) nobody can be excluded from enjoying the benefits of the good.
C) you pay for the good, you are guaranteed to be the sole consumer.
D) when you consume a unit, you have not decreased the amount left for consumption by other
people.
E) anybody can be excluded from enjoying the benefits of the good.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: TS
AACSB: Reflective thinking
9) A basketball game aired as a pay-per-view show by your local cable network and to which
you can invite your friends to watch is a ________ good.
A) rival
B) nonrival
C) nonexcludable
D) rival and nonexcludable
E) quasi public/quasi private
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: SA
AACSB: Reflective thinking
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Copyright © 2011 Pearson Education, Inc.
10) The fact that Florida’s consumption of national defense does not preclude North Dakota from
consuming the same national defense is an example of
A) a private good.
B) a common resource.
C) the rival nature of consumption.
D) excludable goods.
E) a good that is nonrival in consumption.
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: JC
AACSB: Reflective thinking
11) A private good is defined as a good or service
A) that is something tangible.
B) that is rival and excludable.
C) that is rival and nonexcludable.
D) produced by a single country.
E) that is nonrival and nonexcludable.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: WM
AACSB: Reflective thinking
12) A private good is
A) nonexcludable and nonrival.
B) excludable and rival.
C) excludable and nonrival.
D) nonrival and excludable.
E) subject to the free-riding problem.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: CD
AACSB: Reflective thinking
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Copyright © 2011 Pearson Education, Inc.
13) A good that is both rival and excludable is
A) a good that is impossible to produce.
B) a private good.
C) a common resource.
D) a public good.
E) nonexistent because no good can be both rival and excludable.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: TS
AACSB: Reflective thinking
14) A good that is ________ and ________ is a ________.
A) rival; excludable; private good
B) rival; excludable; public good
C) nonrival; excludable; public good
D) rival; nonexcludable; private good
E) nonrival; nonexcludable; private good
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: JC
AACSB: Reflective thinking
15) A good is a private good if
A) people who do not pay for the good can enjoy it without paying for it.
B) it is not a common resource.
C) the good is nonrival.
D) the good is excludable and rival.
E) it is both nonexcludable and nonrival.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: PH
AACSB: Reflective thinking
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Copyright © 2011 Pearson Education, Inc.
16) Which of the following is the best example of a private good?
A) a can of Mountain Dew
B) a missile defense system
C) a library in St. Louis
D) a sidewalk in Fargo
E) a cod fish swimming in the middle of the ocean
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: JC
AACSB: Reflective thinking
17) Which of the following is an example of a pure private good?
A) national defense
B) the Florida State Turnpike, a non-congested toll freeway
C) Lake Erie
D) the Metropolitan Museum of Art in New York City
E) the new heat pump your neighbor bought for her house
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: SA
AACSB: Reflective thinking
18) An office in the Empire State Building is
A) a private good.
B) nonexcludable, because it is possible to restrict access to it.
C) a common resource.
D) a public good because many people can be in the Empire State Building.
E) excludable and nonrival.
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: SA
AACSB: Reflective thinking
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Copyright © 2011 Pearson Education, Inc.
19) A professional football game played in a completely full stadium is NOT a public good
because it is
A) nonexcludable and nonrival.
B) excludable and nonrival.
C) excludable and rival.
D) nonexcludable and rival.
E) not supplied by the government.
Skill: Level 3: Using models
Section: Checkpoint 10.1
Author: SB
AACSB: Reflective thinking
20) One important feature that distinguishes a private good from a public good is that
A) only the government can produce private goods.
B) nobody can be excluded from enjoying the benefits of a private good.
C) a private good is excludable and a public good is nonexcludable.
D) if you consume a unit of a private, that means there is no less for someone else.
E) a private good is nonrival and a public good is rival.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: TS
AACSB: Reflective thinking
21) One important feature that distinguishes a public good from a private good is that
A) only the government can produce public goods.
B) it is impossible to prevent a person from enjoying the benefits from a public good.
C) if you pay for a unit of a public good, you are guaranteed to be the sole consumer.
D) if you consume a unit of a public good, there is one unit less for someone else.
E) Both answers C and D are correct.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: TS
AACSB: Reflective thinking
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Copyright © 2011 Pearson Education, Inc.
22) A good or resource that is both nonrival and nonexcludable is
A) a good that is impossible to produce.
B) a private good.
C) a common resource.
D) a public good.
E) nonexistent because it is impossible for a good or resource to be both nonrival and
nonexcludable.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: TS
AACSB: Reflective thinking
23) A public good is
A) rival and excludable.
B) rival and nonexcludable.
C) nonrival and excludable.
D) nonrival and nonexcludable.
E) a good that has an infinite number of substitutes.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: SB
AACSB: Reflective thinking
24) A public good
A) only yield benefits to those that decide to buy it.
B) is the same as a common resource.
C) is nonrival and nonexcludable.
D) is rival.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: PH
AACSB: Reflective thinking
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Copyright © 2011 Pearson Education, Inc.
25) A good or resource from which no one can be excluded and which is nonrival is a
A) government good.
B) private good.
C) common good.
D) public good.
E) common resource.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: JC
AACSB: Reflective thinking
26) If no one can be excluded from receiving the benefits of a good or service and the
consumption of the good or service does not decrease the amount available to someone else from
consuming it, then the good
A) is a private good.
B) is a common resource.
C) is a public good.
D) is a natural monopoly.
E) Both answers B and C are correct.
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: SA
AACSB: Reflective thinking
27) If a good or resource is rival, it could be a
A) public good.
B) private good.
C) common resource.
D) Both answers B and C are correct.
E) Both answers A and C are correct.
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: SA
AACSB: Reflective thinking
10
Copyright © 2011 Pearson Education, Inc.
28) A common resource is
A) a service rather than a good.
B) nonrival and nonexcludable.
C) rival and excludable.
D) rival and nonexcludable.
E) nonrival and excludable.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: WM
AACSB: Reflective thinking
29) A common resource is
A) rival and excludable.
B) rival and nonexcludable.
C) nonrival and excludable.
D) nonrival and nonexcludable.
E) None of the above answers is correct.
Skill: Level 1: Definition
Section: Checkpoint 10.1
Author: MR
AACSB: Reflective thinking
30) An example of a common resource is a
A) bridge.
B) non-crowded movie theater.
C) tuna in the ocean.
D) national defense.
E) All of the above answers are correct.
Skill: Level 2: Using definitions
Section: Checkpoint 10.1
Author: SA
AACSB: Reflective thinking