Economics MCQs

Page No. 230

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


aa firework displays


bnational defense


ciron one


da national park


View Answer a national park

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


aan excludable good.


b a private good


ca common resource


da public good.


View Answer a common resource

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


arival good


bpublic good


c private good


dcommon resource


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


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


dproduces a good but fails to receive payment for the good



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


athe rivalness problem


bthe public goods problem


cthe Tragedy of the Commons.


dThe free-rider problem.



A good produced by a natural monopoly is ?


arival but not excludable


bneither rival nor excludable


cnot rival but excludable


d both rival and excludable



A public good is ?


aneither rival nor excludable


b rival but not excludable


c both rival but excludable


d not rival but excludable



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


aexcess baggage


ba free rider


c a costly rider


da common resource


View Answer a free rider

A congested toll road is ?


aa good produced by a natural monopoly


ba private good


ca public good


da common resource


View Answer a private good

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


agovernment regulation


bthat prices are not low enough so firms over produce


cthat prices are not high enough, so people overconsume


dthat property rights have not been well established



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