Chapter 19 Test Bank KEY
1. The type of good that is most likely to be subject to market failure is:
2. When a good ends up over consumed and depleted, we can assume it is a:
3. When a good ends up undersupplied, we can assume it is a:
4. The problem caused by goods that are considered common resources is that they are:
5. Public goods, when left to the private market will be:
6. Which of the following is likely to cause a market failure and be over consumed?
7. Which of the following is likely to cause market failure and be undersupplied?
8. When faced with a market failure, the government:
9. Which of the following goods is most likely to be over consumed? Fish in:
10. Which of the following goods is most likely to be over consumed?
11. Which of the following is most likely to be over consumed?
12. When a good is excludable:
13. When a good is rival in consumption:
14. Private goods are:
15. Excludability matters because it:
16. If you can’t prevent people from consuming something, then:
17. An example of an excludable good or service is:
18. An example of an excludable good or service is a:
19. An example of a good that is not excludable is:
20. Most goods are:
21. An example of a good that is rival in consumption is:
22. An example of a good that is not rival in consumption is:
23. An example of a good that is rival in consumption is:
24. Goods that are rival in consumption and excludable are:
25. Goods that are rival in consumption, but not excludable are:
26. Goods that are not rival in consumption, but are excludable are:
27. Goods that are neither rival in consumption nor excludable are:
28. A common resource is:
29. A public good is:
30. An artificially scarce good is:
31. Traffic lights would be considered:
32. Cookies would be considered:
33. Fish in the ocean would be considered:
34. Streaming Netflix movies would be considered:
35. Fireworks would be considered:
36. A smart phone would be considered:
19-8
37. Markets work well for allocating ____________ efficiently, but not always so well for allocating
______________________.
38. The similarity between markets for common resources and markets with externalities is that:
39. The free rider problem is caused by the:
40. When a good is not easily excludable, what people pay for it will:
41. When what people pay does not necessarily reflect the real value they put on a good, it is likely that
the:
42. When what people pay does not necessarily reflect the real value they put on a good, it is likely that
the:
43. When the free rider problem is present in a market:
44. When the free rider problem is present in a market the good:
45. Free riders enjoy:
46. Nonexcludable goods tend to be undersupplied because:
47. One way to solve the free-rider problem is:
48. An example of a public good is:
49. An example of a public good is:
50. Wikipedia is an example of a:
51. When goods are subject to market failure, all of the following are possible solutions to the market
failure except:
52. All solutions to market failures in markets for public goods or common resources:
53. When government tries to change social norms, they:
54. If the government runs an ad campaign to shame litterers, they are:
55. Which of the following is not a consideration when attempting to eliminate a free rider problem or
56. When we consider solving a free rider problem through changing social norms, it is helpful to
remember:
57. Social disapproval carries a higher cost in all of the following cases except when you:
58. Because government bodies have the power to make up for inadequate supply of a good:
59. To combat the undersupply of public goods, a solution is:
60. In a functioning market, people will buy a good up to the point where:
61. If the marginal benefit were greater than the cost of a good: