An individual who wants others to pay for public goods, but plans to use those goods for their own purposes, is often referred to as a A. free riderB. tax evader C. excludable D. nonexcludable


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There is a skating rink in your city that is open to anybody to use at any time. They even provide skates for people who don"t own any. This is an example of a good that is
If large numbers of individuals choose to behave as free riders, A. public goods will quickly be privatized.B. the public good may never be provided.C. more of the public good will be available for paying riders.D. public domain technologies become more difficult to obtain.
I"mAComputerCo. would likely be more willing to undertake an innovative research project to reduce the amount of electricity required to run its computers if there were some form of guarantee that if it succeeded, A. it will enjoy a small temporary advantage over the competition.B. it would be able to set price to compensate for development costs.C. it could sell the new computers as a monopoly for at least a few years.D. it would receive a government bailout if losses could drive it out of business.
Generally, market competition and technology canA. support each otherB. oppose each otherC. compliment each otherD. sometimes a or b.
In order for a good to be classified as ____________ , when one person uses the good, others are also able to use it. A. unrivalrousB. unexcludableC. nonexcludableD. nonrivalrous
Which of the following would most likely be recognized as a defining characteristic of a public good? A. the good is nonrivalrous item B. the good is nonexcludable item C. the good is both a and b above D. the good is a separate and identifiable item
For a positive externality, than the social benefits. A. social benefits of an action are moreB. social costs of an action are lessC. private benefits of an action are lessD. private benefits of an action are more
Which of the following would be classified as a positive externality? A. a surcharge for ambulance service is shifted to property taxesB. converting a derelict empty lot to a public vegetable gardenC. removing government education subsidies for public schoolsD. reselling outdated textbooks to under-funded public schools
When it is costly or impossible to exclude someone who hasn"t paid to use a particular good from using it, then that good is classified as being A. unexcludable B. public good C. non-excludable D. free rider
Cathy can take either of two separate roads to drive to work. The first is a lightly used new toll road that is rarely congested. The second road is a local road with no tolls, but it is often congested and has many potholes. In this instance, the toll road is A. rivalrous and nonexcludableB. rivalrous and excludableC. nonrivalrous and nonexcludableD. nonrivalrous and excludable
A public good is a good that is _________ ___________ , and thus is difficult for market producers to sell to individual consumers. A. excludable or rivalrousB. excludable and rivalrousC. non-excludable and non-rivalrousD. non-excludable or non-rivalrous
For a negative externality, the _______________________ than the costs imposed on society as a whole. A. social costs of an action are lessB. social benefits of an action are moreC. private costs of an action are lessD. private benefits of an action are more
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Connect Finance Online Access for Essentials of Investments9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie
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