Question

Squirrels have become a popular snack for people living in Raleigh. People with bb guns like to go into one of the many parks within the city limits and shoot them out of the trees. Solving a tragedy of the commons problem related to squirrels could be done through ________.

Select one:

a. either issuing tradable permits for shooting a squirrel or making it illegal to shoot squirrels will work, though making it illegal is more efficient.

b. tradable permits for shooting a squirrel (only)

c. either issuing tradable permits for shooting a squirrel or making it illegal to shoot squirrels will work, though issuing tradable permits is more efficient.

d. making it illegal to shoot squirrels (only)

The Baker News is a popular cable television news show. To watch the show requires a paid subscription. Therefore, which of the following is TRUE?

Select one:

a. This show is club good because (1) it is excludable and (2) the number of people watching does not diminish another person's ability to watch.

b. This show is a public good because payers and nonpayers alike are watching a rival show.

c. This show is a common good because (1) nonpayers can be excluded and (2) everyone can watch at once.

d. This show is a public good because (1) no one can be excluded and (2) it is nonrivial.

The difference between satellite TV (a club good) and public television (a public good) is that satellite TV is _____ and public television is _____.

Select one:

a. nonexcludable and rival; excludable and rival

b. excludable and nonrival; excludable and rival

c. excludable and nonrival; nonexcludable and nonrival

d. nonexcludable and rival; nonexcludable and nonrival

Answer 1

1 - Option D

Making it illegal to shoot squirrels

Issue of tradable permits will not lead to solution of problem. Hence declaring it illegal to shoot will be efficient.

2 - Option A.

This show is a club good because is it excludable and use by one does not diminish the use by other.

It is not a public good since it is excludable and not a private good as it is non rivalrous. Hence option A will be correct

3 - Option C

Excludable and non rival , non excludable and non rival

Club good is excludable and non rival and public good is non excludable and non rivalrous. Hence Option C will be correct