Economics

Common-Pool Resources and

Public Goods
Dept. of Economics @ NCKU
Weng, Ming-Hung
 Q1
street light is ___ in rivalry and ___ in
excludability
1. High, high
2. High, low
3. Low, high
4. Low, low
 Q2
Fishery resources are ___ in rivalry and ___
in excludability
1. High, high
2. High, low
3. Low, high
4. Low, low
 Q3
If 50 people use the road at rush hour, the trip
takes 20 minutes. If the 51st person enters the
road, the trip now takes 21 minutes. People
value their time at $0.10 per minute. The
governor of this state would like to institute a
toll that would equal the costs the last (51st)
driver imposes on the other drivers. How high
should the toll be on this road during rush
hour?
1. $5; 2. $7; 3. $10.1; 4. $13.1
 Q4
Tinker, Evers, and Chance share an Tinker Evers Chance
apartment. Its cold outside and 1st degree
they are considering turning up the $5 $4 $3
thermostat in the apartment up by 2nd degree $4 $3 $2
1, 2, 3, or 4 degrees. Their 3rd degree $3 $2 $1
individual marginal benefits from
warmer apartment are as the table. 4 degree $2 $1 $0
th

Assume the heating bill goes up by

$5 each time the temperature is 1. $27
raised up by one degree. The
marginal social benefit from 2. $12
making it the THIRD degree 3. $9
warmer is 4. $6
 Q5
Tinker, Evers, and Chance share Tinker Evers Chance
an apartment. Its cold outside
and they are considering turning
1st degree $5 $4 $3
up the thermostat in the 2nd degree $4 $3 $2
apartment up by 1, 2, 3, or 4 3rd degree $3 $2 $1
degrees. Their individual
marginal benefits from warmer 4th degree $2 $1 $0
apartment are as the table. If
the heating bill goes up by $5 1. 1
each time the temperature is 2. 2
raised up by one degree, by how
many degrees should they raise 3. 3
the temperature? 4. 4