KTCC

Which of the following characteristics is of public goods?

• Excludable and competitive

• Non-excludable and non-competitive

• Excludable but non-competitive

• Non-excludable but competitive

When does the free rider problem occur?

• Consumers refuse to consume public goods

• Some individuals benefit from public goods without paying for them

• The government restricts the provision of public goods

• Producers of public goods charge excessively high prices

Which of the following is a club good?

• National defense

• Netflix subscription

• Public park

• Fresh air

How are local public goods best described?

• Goods that have benefits limited only to residents of a specific area

• Goods that are always completely satisfying with no competition and cannot be excluded

• Goods that are only provided by the central government

• Goods that create global benefits

When the transaction costs of public goods are very high, what does the government usually do?

• Let the market provide

• Provide publicly and fund through taxes

• Prohibit the consumption of such goods

• Sell them exclusively to private monopolies

What is an externality?

• Costs that are borne solely by the producer

• Benefits or costs of an activity that affect others without compensation

• A type of market good that has competition and can be excluded

• A situation where all resources are allocated efficiently

In the case of negative externalities (e.g., pollution), what is the typical market outcome?

• Overproduction compared to the socially optimal level

• Underproduction compared to the socially optimal level

• Exact alignment with the socially optimal level

• No production at all

Which of the following is a positive externality?

• Air pollution from factories

• Traffic congestion from car usage

• A homeowner planting flowers to beautify the neighborhood

• Overfishing in shared waters

Which good is a public good that is not perfectly competitive because it can be excluded but mainly has no competition until it reaches capacity?

• Toll roads with electronic gates and no congestion

• Coastal lighthouse signals

• Research with open access published online

• Air in a remote area

What type of open-source software can be downloaded and copied by anyone without restrictions?

• Perfect public goods

• Imperfect public goods

• Private goods

• Common resources