31.Which of the following not a problem with a public : 1413854
31.Which of the following is not a problem with a public good?
a.An incentive to free-ride
b.A public good is often underconsumed
c.An absence of private property rights
d.An inability to limit consumption to those who purchase the good
e.A public good is usually underproduced
32.In China prior to 1990, most residential buildings were in dilapidation because:
a.people were not aware of the maintenance and beautification techniques.
b.the government did not encourage wastage of resources for such purposes.
c.no one had a property right to a home.
d.all the properties were ancestral.
e.the people had private property rights so they did not have an incentive to repair the houses.
33.One reason that some whales were hunted close to extinction is that no one can claim ownership of a whale until it is killed. If property rights to the whale population were established:
a.then whales would surely be hunted to extinction.
b.the owners would have the incentive to ensure a sustainable yield of whales, so the whale population could recover.
c.no one would hunt whales.
d.the price of whales would be kept artificially low so that trade in whales would become unprofitable.
e.the whales would be hunted to extinction only when the price is high and it is profitable to trade in whales.
Number of boats per hourTotal pounds of fish caught per hour
34.Refer to Table 13.2. Suppose fish sells for $1 per pound. If each fisherman decides whether or not to fish based on the average catch, how many boats per hour will go out to fish?
35.Refer to Table 13.2. Suppose fish sells for $1 per pound. If each fisherman decides whether or not to fish based on the average catch, what is the profit that each fisherman earns?
36.Refer to Table 13.2. Suppose fish sells for $1 per pound. What is the socially optimal number of boats that will maximize the profit earned by the fishermen?
37.Refer to Table 13.2. Suppose fish sells for $1 per pound. What is the amount of total profit earned when the fishermen use the socially optimal number of boats?
38.One of the reasons that communism failed in the Soviet Union is that, under communism:
a.no one had a property right, so there is little incentive to use resources efficiently.
b.there were high rates of unemployment and homelessness accompanied by a high rate of inflation.
c.planners did not have all the information necessary to make efficient decisions.
d.there was a high degree of political freedom.
e.there was a high degree of economic freedom.
39.Tragedy of commons refers to:
a.a problem that is created when everything is privately owned.
b.a situation when the resources are owned by the government and the common people have limited access to them.
c.a problem that arises when government takes incorrect measures which adversely affect common people.
d.a problem that is created when everyone has an access to a particular resource.
e.the adverse situation that arises when the government fails to take adequate measures to solve common problems.
40.If the government is successful in internalizing the external costs of production in a market, then:
a.social costs will equal private costs.
b.an inefficient level of output will be produced.
c.social costs will exceed private costs.
d.social costs will be less than private costs.
e.social costs will fall to zero.