1. A characteristic of public goods is that use of the good by one person does not reduce its availability to others. The term for this characteristic is...
- Non-rival
- Perfectly elastic
- Free-rider
- Non-exclusive
- Transferable
2. The two characteristics of a public good are:
- Non-rival and non-priced
- Non-exclusive and inelastic
- Non-rival and inelastic
- Non-exclusive and non-priced
- Non-rival and non-exclusive
3. Which one of the following statements about public goods is true?
- Public goods will tend to be oversupplied
- Money to provide public goods is commonly collected from free riders
- Problems with public goods can always be solved by charging a fee to use the good
- Public goods may provide psychic benefits
- Public goods are any goods owned or provided by governments
4. Suppose that 10,000 people are willing to spend a maximum of $20 each to preserve one acre of rainforest. A conservation group mails out a request to each person asking him or her to mail in $40 to preserve one acre of rainforest. How many acres of rainforest will be preserved with this program?
- 5,000 acres
- 10,000 acres
- Zero acres
- 1,000 acres
5. If 10,000 people are willing to spend a maximum of $20 each to preserve one acre of rainforest, how many acres of rainforest could be preserved, at $40 per acre without exceeding people's willingness to pay?
- 5,000 acres
- 10,000 acres
- Zero acres
- 1,000 acres