【正文】 s rarely another lighthouse nearby to provide petition.c. a nearby port authority cannot avoid paying fees to the lighthouse owner.d. all passing ships are able to enjoy the benefits of the lighthouse without paying.ANS: D PTS: 1 DIF: 2 REF: 112TOP: Free riders MSC: Applicative 79. You are the mayor of a small town with 2,000 residents. The head of your economic development agency recently conducted a survey in which the 2,000 residents said that a public concert in the center of town would be worth $20 to each of them. Since the concert cost only $5,000 to hold, you organized and held the concert, which everyone in town enjoyed. But when you asked for donations to pay for the concert, you only collected $300. You are convinced thata. the survey must have overstated how much the concert was worth to each resident。 otherwise, you would have collected $40,000 in donations.b. the cost of the concert exceeded the social benefits.c. the concert was an example of the Tragedy of the Commons.d. residents of the town were probably freeriders at the concert.ANS: D PTS: 1 DIF: 2 REF: 112TOP: Free riders MSC: Analytical 80. Private markets usually fail to provide lighthouses becausea. lighthouses cost too much to build relative to their benefits.b. government intervention makes it hard for private lighthouse owners to pete in the market.c. ship captains have incentives to use lighthouses without paying.d. lighthouses are valued very little by ship captains these days.ANS: C PTS: 1 DIF: 2 REF: 112TOP: Free riders MSC: Applicative 81. Which of the following is an example of the freerider problem?a. Both Fred and Wilma receive lowcost dental care at the local dental school, so neither of them pays the full cost of the care.b. Elmer receives a free lunch from the local Meals on Wheels program because of his low monthly ine. Yet his next door neighbor, Dorothy, is not eligible for the free lunch.c. Max owns Fido, a large dog who barks whenever anyone walks near his house. Sally lives next to Max, and Fido39。s barking can be heard whenever anyone walks near her house, too. Thus, Sally receives free protection from burglars because of Fido39。s barking.d. Both David and Carolyn can enjoy a beautiful sunset from the porches of their adjacent houses, yet neither of them pays to watch the sunset.ANS: C PTS: 1 DIF: 3 REF: 112TOP: Free riders MSC: Analytical 82. In 2004, per person expenditures on national defense in the . amounted to about a. $800.b. $1,200.c. $1,500.d. $2,000.ANS: C PTS: 1 DIF: 1 REF: 112TOP: Public goods MSC: Applicative 83. Knowledge is an example of aa. public good.b. private good.c. mon resource.d. natural monopoly good.ANS: A PTS: 1 DIF: 1 REF: 112TOP: Public goods MSC: Applicative 84. Advocates of antipoverty programs claim that fighting povertya. is best acplished by charities.b. is a public good.c. is more efficiently acplished by the market.d. should not be attempted with tax dollars.ANS: B PTS: 1 DIF: 1 REF: 112TOP: Public goods MSC: Applicative 85. Which of the following statements is not correct?a. Medical research can be an example of a public good.b. The private market will tend to undersupply public goods.c. The freerider problem occurs when a good is nonexcludable.d. All goods provided by the government are public goods.ANS: D PTS: 1 DIF: 2 REF: 112TOP: Public goods MSC: Analytical 86. The national defense of the United States is not rival becausea. my enjoyment of the national defense does not diminish your enjoyment of the national defense of the United States.b. my enjoyment of the national defense does diminish your enjoyment of the national defense of the United States.c. my enjoyment of the national defense excludes you from enjoying the national defense of the United States.d. Both b and c are correct.ANS: A PTS: 1 DIF: 2 REF: 112TOP: Public goods MSC: Applicative 87. Which of the following is a disadvantage of government provision of a public good?a. The government lacks information about what people are willing to pay for the good.b. The government does not provide enough of any public good.c. The private sector can provide all public goods at a lower cost.d. None of the above is a disadvantage.ANS: A PTS: 1 DIF: 2 REF: 112TOP: Public goods MSC: Interpretive 88. If people prefer to live in a society without poverty, then fighting poverty can be thought of as a public good. Why can’t the private sector provide sufficient “poverty reduction”?a. Because people who do not donate to private charities can “free ride” off those who do.b. The private marketplace can provide a socially optimal quantity of these programs with no government interference.c. Because the Food Stamp program is more efficient than private food pantries run by charities.d. Both a and b are correct.ANS: A PTS: 1 DIF: 2 REF: 112TOP: Public goods MSC: Interpretive 89. Which of the following is not a characteristic of a public good?a. It requires resources to produce.b. It is not diminished or depreciated as additional people consume the good.c. Its benefits cannot be withheld from anyone.d. Because it is a free good, there is no opportunity cost.ANS: D PTS: 1 DIF: 2 REF: 112TOP: Public goods MSC: Interpretive 90. Which of the following is an example of a public good?a. a candy barb. a painting by Monetc. a beautiful sunsetd. a crowded beachANS: C PTS: 1 DIF: 2 REF: 112TOP: Public goods MSC: Applicative 91. To achieve the optimal provision of public goods, thea. market should be allowed to arrive at an equilibrium without government intervention.b. government must limit the provision of the goods.c. government must tax producers of the goods.d. government must either provide the goods or subsidize their production.ANS: D PTS: 1 DIF: 2 REF: 112TOP: Public goods MSC: Applicative 92. People have litt