Economics Chapter 19 2 The Cost Were Greater Than The

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Topic: Social Norms

62. If the cost were greater than the marginal benefit of a good:

63. If the government is supplying a public good, the efficient quantity is where the:

64. The marginal social benefit is the:

65. Nonexcludability causes:

66. One way the government decides how to pay for public goods is:

67. One way the government decides how to pay for a public good is:

68. Which of the following is not an example of a public good that the government has made excludable?

69. An example of a public good that the government has made excludable is:

70. An example of a public good that is difficult to make excludable is:

71. An example of a public good that is difficult to make excludable is:

72. Nonexcludability, in the case of rival goods, causes:

73. The combination of inefficiently high demand and dwindling quantity leads to what is called:

74. The tragedy of the commons is the:

75. The depletion of a common resource due to individually rational but collectively inefficient

overconsumption is called:

76. The free-rider problem is triggered by being:

77. The tragedy of the commons arises from the:

78. When a good is not excludable but is rival in consumption the:

79. When a good is both rivalrous and nonexcludable the:

80. The free rider problem is triggered when a good is ______________, and the tragedy of the commons

arises when a good is ________________

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81. In a market where the tragedy of the commons arises, the equilibrium quantity is both individually

____________ and collectively __________.

82. Not having to pay for a good leads to:

83. When someone does not have to pay for a good it:

84. Using a common resource:

85. If those who consumed common resources were subject to a tax that was equal to the external costs

that they imposed due to the negative externality created, their demand curve would shift:

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86. If those who consumed common resources were subject to a tax that was equal to the external costs

that they imposed due to the negative externality created:

Topic: Tragedy of the Commons

87. Social disapproval is likely to be more effective:

88. One “design principle” that makes informal, community-based solutions to public goods and common

resource problems more effective is:

89. One “design principle” that makes informal, community-based solutions to public goods and common

resource problems more effective is:

90. Elinor Ostrom won the 2009 Nobel Prize in economics for her research showing:

91. In 2009, the Nobel Prize in economics was awarded for work on the effectiveness of social norms in

the management of commonly held property to:

92. Government intervention can be productive and efficiency enhancing:

93. Because government bodies have the power to impose limits on how much of a resource is

consumed:

94. One way the government can enhance efficiency through the management of common resources is

by:

95. When the government bans a good:

96. When the government bans a good it:

97. When the government bans a good:

98. The costs involved with breaking a ban placed on a good depend on all of these except the:

99. If the punishment associated with breaking a ban is not severe enough, it may:

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100. A government ban on a good that suffers from overconsumption may be ineffective if the:

101. If the punishment is _________, or the likelihood of getting caught is _________, the cost

associated with breaking a ban may not be high enough to change the trade-off that consumers face.

102. Bans and quotas ___________ in situations where it is difficult or costly for authorities to monitor

and punish rule-breakers.

103. Bans or quotas that limit the use of common resources are straightforward public-policy approaches

to solving the problem of overuse if:

104. When the optimal quantity of consumption is zero for a given good:

105. Bans are applied to:

106. When choosing the right amount of a public good to supply, the government often:

107. A modern example of privatizing a common resource is:

108. When the government privatizes a common resource, it does all of the following except:

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109. One of the difficulties of the government privatizing a common resource is:

110. Using tradable allowances instead of quotas may be a better solution to the provision of common

resources because they:

111. Like negative externalities, tradable permits are useful in allocating common resources because:

Chapter 19 Test Bank Summary