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Public Goods
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First Name
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Period
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Period 1
Period 2
Period 3
Period 4
Period 5
Which of the following best characterizes a public good?
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1 point
People who do not pay for the good can be excluded from using it.
If one person uses the good, it does not prevent others from using it.
It is easy to determine who must pay for the good.
The good is produced by the public sector.
The good exhibits positive externalities.
When Joe watched a television movie, his viewing was ________ in consumption because other people ________ able to view the movie at the same time Joe did.
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1 point
nonrival; were
rival; were
rival; were not
nonrival; were not
The market system fails to produce public goods because
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1 point
there is no need or demand for such goods
private firms cannot restrict the benefits of such goods only to consumers who are willing to pay for them
public enterprises can produce such goods at lower cost than can private enterprises
their production seriously distorts the distribution of income
a person unwilling to pay can be excluded from the benefits that the product provides.
The free rider problem is associated with
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1 point
all market goods.
goods that are exclusionary.
bus transportation.
the production of public goods.
the production of public transportation.
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