1. The socially optimal provision of a public good can be obtained by ...
- Horizontally adding the demand curves for the good
- Eliminating access to the good
- Privatizing the good
- Vertically adding the demand curves for the good
- Allowing open access to the good
2. Which one of the following goods can be considered a global commons?
- A herd of deer
- A diamond mine
- A National Park
- A river
- An ocean
3. The "tragedy of the commons" is most likely to occur with which one of the following goods?
- A groundwater aquifer
- A city park
- A national forest
- A mineral ore deposit
- A public highway
4. Which one of the following statements is false?
- Problems with the global commons are becoming more prevalent as human economic activity increases
- Global warming and ocean pollution are examples of global commons issues
- Solving problems with global commons usually requires international cooperation
- Problems with global commons occur because countries view their global environmental impacts as externalities
- Solving problems involving global commons is not possible because of free rider effects
5. Which one of the following statements is false?
- Public preferences are not always expressed in markets
- Public and private preferences may differ
- Public goods often tend to be undersupplied
- Market solutions are always economically efficient
- Problems with global commons are partly a result of free riding