Chapter 19

Identify whether each of the following goods is usually excludable or nonexcludable. [LO 19.1] a. AM/FM radio. b. A round of golf on a course. c. Street art. d. A museum exhibition. e. Toll roads.

Identify whether each of the following goods is rival or nonrival. [LO 19.1] a. Cable TV. b. A pair of jeans. c. Street signs. d. Attending a baseball game.

Consider community safety or defense, meaning freedom from crime and threats, to answer the following questions. [LO 19.2] a. What sort of good is community safety? b. If you lived in a place with no governmentfunded police force, would you expect community safety to be oversupplied or undersupplied? c. Suppose that some neighbors get together and organize a block watch group. What term do economists use to describe someone who lives in the neighborhood but chooses not to volunteer as part of the block watch?

From the list below, which of the following do you expect to suffer from a free-rider problem? Check all that apply. [LO 19.2 ] a. Pay-what-you-can yoga classes. b. Unlimited yoga classes with monthly membership dues. c. Fundraiser for public television. d. Neighborhood park cleanup day. e. Housecleaning business operating in your neighborhood. f. Suggested museum-admission donation.

In much of the United States and Canada, logging takes place in both privately owned and government-owned forests. [LO 19.3] a. Are privately owned forests excludable? Are they rival? What type of good are they? b. Suppose that anyone is legally allowed to enter a government-owned forest and start logging. What type of good are these forests? c. Do you expect the rate of logging in government-owned forests to be faster, slower, or equal to the efficient level?

Which of the following subway announcements are attempts to establish or enforce a social norm? \(\left[\mathrm{LO}_{19.4}\right]\) a. "Loud music and phone conversations are discourteous to fellow riders. Please keep the noise down." b. "If you see something, say something." c. "Please watch your step as you exit. Be careful of the gap between the train and the platform edge." d. "Please be patient and allow others to exit the train before you attempt to enter." e. "The train is being held at the station due to traffic ahead. We apologize for the inconvenience."

Determine whether each of the following policy interventions is designed to increase supply or decrease demand for a public good or common resource. a. A city government increases the frequency of street sweeping. b. London begins charging a toll to all vehicles that drive within the city limits. c. A gated community passes a bylaw requiring all homeowners to mow their lawns once a week during the summer. d. The National Park Service increases the cost of a pass to enter the Everglades.

Consider the following government-provided goods. Which of these goods necessarily require funding via general taxation (as opposed to direct user fees)? [LO 19.5] a. Street lights. b. A park. c. A fireworks display. d. Public radio. e. A library.

Public-opinion polls in a small city have revealed that citizens want more resources spent on public safety, an annual fireworks display, and more community swimming pools. Which of these three citizen requests could be privatized by assigning property rights?

For each of the following examples, state which of these approaches is being taken to manage a common resource or supply a public good: social norms, quota, tradable allowance, government provision, or property rights. a. A nonprofit organization spray-paints signs on storm drains reminding everyone that it "drains to the ocean" with a picture of a fish. b. A city starts a free program that collects recyclable glass, paper, and plastic from residents doorsteps. c. In England, municipal-waste authorities are given a percentage of an overall limit that can be put in the landfill each year. These percentages can be traded among municipalities. d. American bison, which once roamed freely across the Great Plains, are now raised on ranches for commercial purposes.