Question

26. what environmental problem arises from common property resources? a. negative externality. b. overexploitation. c. government failure. d. high transaction cost.

27. Externalities are

a. exports.

b. illegal businesses.

c. prisoners on work release

d. costs or benefits not reflected in market prices.

29. The efficient quantity of a public good is that for which marginal social cost equals

a. marginal private cost.

b. marginal external cost.

c. average social cost.

d. marginal social benefit.

30. Which of the following is not a public good?

a. a lighthouse.

b. national public radio.

c. national defense.

d. military aircraft.

32. Public goods are provided by the government because the

a. private sector is typically unable to earn profits from their production.

b. private sector lacks sufficient financial resources.

c. private sector lacks the knowledge of how to produce them.

d. government is more technologically efficient at producing these goods than firms in the private sector

Answer 1

Common _) Resources (this is a type of type of good which is available to everyone but it faces a problem of congestion more fm more people use it. This making it a non excludable but rivalous overuse good. I r. Eg, fishery environment +

20) 15 are not b) Over exploitation [ common resources excludable but are rivalrous nature thus it leads to the available resource] over exploitation of d) costs benefits not reflected not reflected in market prices [ Externality third party & most of doount market prices is benefit that all of affects reflect in 어 25 MSB 297 d) at socially efficient level MSc = MSB where Msc = MPC & MEL 30 30) d) military aircraft C.: Public goods are non-excludable and non-sinabrous. in nature &. its use by one one individual doesn't prevent another individual from consuming it. Garmis