chapter 2 part 1

1. When consumption of a good is non-rival and non-excludable, the good is a

• public goods

• mixed goods

• private goods

• service

2. Public goods are goods that ……….. Be withheld from those who wont pay for it

• can not

• can

• should

• maybe

3. An example of a public good is

•   A loaf of bread.

•  National defense services.

•  A Ford truck.

• A home computer.

4. Public goods are financed by……..

• Revenues

• Private Sector

• taxes

• a&c

5. A good or service or a resource is non-excludable if

• It is possible to prevent someone from enjoying the benefits of it.

• Its use by one person decreases the quantity available for someone else.

• It is not possible to prevent someone from benefiting from it.

• Its use by one person does not decrease the quantity available for someone else.

6. Education at a private university is NOT a public good because it

• Excludable.

• Non-rival.

• Both non-rival and non-excludable

• None of the above answers is correct

Of those listed below, the best example of a pure public good is

• A radio broadcast

• A book

• A rock concert held in a small auditorium.

• A state lottery

8. ………….. Means meaning that a given quantity of a public good can be enjoyed by more than one consumer without decreasing the amounts enjoyed by other consumers.

• Non rival

• Non Excludable

• Non Rejectable

• None of the above

An uncrowded toll road is ________ because it is ________.

• •Not A Pure Public Good; Non-Rival But Excludable.

• Not A Pure Public Good; both Rival and Excludable

• A Pure Public Good; both Non-Rival and Non-Excludable

• •Not A pure public good; non-excludable but rival.

10. A good or service or a resource is non-rival if

• •It Is Not Possible To Prevent Someone From Enjoying The Benefits Of It.

• •It Is Possible To Prevent Someone From Enjoying The Benefits Of It.

• Its Use By One Person Decreases The Quantity Available For Someone Else

• •  Its Use by one person does not decrease the quantity available for someone else.