1. Markets for goods and services that fall into a category of common goods and services are characterized by:
A. costs of the goods and services that are too low.
B. costs of the goods and services that are too high.
C. benefits of the goods and services that are too low.
D. benefits of the goods and services that are too high.
2. To put a price on a public good, regulators must:
a. add up vertically the demands of individuals because consumption is non-rivalrous.
b. add up horizontally the demands of individuals because consumption is non-rivalrous.
c. add up vertically the demands of individuals because consumption is non-exclusionary.
d. add up horizontally the demands of individuals because consumption is non-exclusionary.
3. If societies rely on private (competitive) markets to provide public goods, the amount of the public goods will be what is allocatively efficient and the market price will be what is allocatively efficient.
a. greater than; greater than
b. less than; equal to
c. greater than; less than
d. less than; less than
4. A common resource is a good that is:
a. non-rivalrous and non-excludable.
b. rivalrous and non-excludable.
c. non-rivalrous and excludable.
d. rivalrous and excludable.