Public Goods and Common Resources Clicker Questions

Document created by Elizabeth Uva Employee on Mar 31, 2015Last modified by Elizabeth Uva Employee on Apr 1, 2015
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Ken, Danita, and C.J. all enjoy watching the holiday lights displayed in their neighborhood. The homes association is considering displaying lights around the sign at the entrance to the neighborhood. Ken values the lights at $50, Danita at $40, and C.J. at $20. The lights cost $100. What should the homes association do?

 

A) Install the lights because people like them.

B) Install the lights because the benefits outweigh the costs.

C) Do not install the lights because the costs outweigh the benefits.

D) Do not install the lights because people can put up lights on their own.

 


 

Which of the following goods is non-rival?

 

A) Cars

B) Sunshine

C) Footballs

D) Clickers

 


 

What kind of goods are roads?

 

A) Public goods

B) Private goods

C) Common resource

D) Natural monopoly/quasi-public good

[note: 'correct' response depends on congestion, tolls]

 


 

Roughly 50,000 San Diegans listen to Morning Edition, the morning news segment on National Public Radio (NPR). The benefit to the listeners is equivalent to $20 per year, per person (roughly $1,000,000 total). Once a year, the station holds a pledge drive, asking viewers to make voluntary contributions to NPR. Morning Edition can be considered a public good because:

 

A) It has educational benefits that help the public.

B) It is provided by a public radio station

C) It is rival and excludable

D) It is non-rival and non-excludable

 


 

Roughly 50,000 San Diegans listen to Morning Edition, the morning news segment on National Public Radio (NPR). The benefit to the listeners is equivalent to $20 per year, per person (roughly $1,000,000 total). Once a year, the station holds a pledge drive, asking viewers to make voluntary contributions to NPR. Suppose the cost to produce and broadcast Morning Edition is $900,000 per year. In this case,

 

A) All listeners will likely donate $20 each year.

B) It is socially efficient for Morning Edition to be produced and broadcast.

C) It is not socially efficient for Morning Edition to be produced and broadcast.

D) Morning Edition should not be on public radio but should be provided by a private radio station.

 


 

Imagine a 2,000-acre park with picnic benches, trees, and a pond. Suppose it is publicly owned, and anyone is allowed to enjoy its beauty. When the weather is nice, it is difficult to find parking, and the trash cans overflow with food wrappers on summer afternoons. These problems arise because

 

A) trash cans produce a negative externality, while good weather produces a positive externality.

B) access is limited due to driving distances.

C) if too many people use the park, one person's use can diminish the ability of others to use it.

D) it is easy to fence in the park to control access

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