Microeconomics: Principles for a Changing World Chapter 13- Externalities and pu

Question

Microeconomics: Principles for a Changing World Chapter 13- Externalities and public goods-Chiang This is a 4-part Multiply Choice Question. Please if you do not intend to answer all parts please do not answer it. Thank you. Note: I have had several incorrect answers in Economics questions I have asked recently, so please make sure your answer is correct if you answer it. Thanks again.

Part A. Amtrak exhibits _____, and a can of Budweiser is a _____ product.

excludability; nonrival

nonexcludability; nonrival

excludability; rival

nonexcludability; rival

Part B. The tragedy of the commons applies to goods that are:

rival and excludable.

nonrival and nonexcludable.

nonrival and excludable.

rival and nonexcludable.

Part C. An oil field lies beneath the border of Oklahoma and Texas. Both states drill wells every 100 yards, and in two weeks, the field loses all its pressure and ability to produce, leaving 80% of the oil in the ground. This consequence is an example of market failure due to:

nonrivalry.

public goods.

rivalry between the two revenue-hungry states.

common property resource.

Part D. Which of these is both finite and nonrenewable?

gold

helium

Helium, gold, and copper are all finite and nonrenewable.

copper

FYI: I have asked part D before and got two different answers.

Part A. Amtrak exhibits _____, and a can of Budweiser is a _____ product.

excludability; nonrival

nonexcludability; nonrival

excludability; rival

nonexcludability; rival

Explanation / Answer

Part A- excludability, rival

Excludability means consumers can be prevented from consuming the good.

Rival goods are the goods whose benefits are reduced one consumed by one consumer.

Part B- rival and non excludable

Goods that are rival and non excludable are subject to tragedy of commons.

Party C- common property resource

Oil field is shared by both states and this results in market failure.

Part D- helium, gold and copper are all finite and nonrenewable.

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