Economics MCQs

Page No. 230

Which of the following is an example of a common resource ?


aa firework displays

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bnational defense

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ciron one

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da national park

✓


View Answer a national park

A negative externality affect market efficiency in a manner similar to ?


aan excludable good.

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b a private good

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ca common resource

✓


da public good.

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View Answer a common resource

A positive externality affects market efficiency in a manner similar to a ?


arival good

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bpublic good

✓


c private good

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dcommon resource

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View Answer public good

A free rider is a person who ?


areceives the benefits of a good but avoids paying for it.

✓


bpays for a good but fails to receive any benefit from the good

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c fails to produce goods but is allowed to consume goods.

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dproduces a good but fails to receive payment for the good

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Public goods are difficult for a private market to provide due to ?


athe rivalness problem

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bthe public goods problem

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cthe Tragedy of the Commons.

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dThe free-rider problem.

✓



A good produced by a natural monopoly is ?


arival but not excludable

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bneither rival nor excludable

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cnot rival but excludable

✓


d both rival and excludable

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A public good is ?


aneither rival nor excludable

✓


b rival but not excludable

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c both rival but excludable

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d not rival but excludable

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A person who regularly watches BBC television programs in the UK but fails to pay their TV licence fee is known as ?


aexcess baggage

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ba free rider

✓


c a costly rider

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da common resource

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View Answer a free rider

A congested toll road is ?


aa good produced by a natural monopoly

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ba private good

✓


ca public good

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da common resource

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View Answer a private good

When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?


agovernment regulation

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bthat prices are not low enough so firms over produce

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cthat prices are not high enough, so people overconsume

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dthat property rights have not been well established

✓



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