31 Questions
Which sector of the economy is owned, financed, and controlled by private individuals?
Private sector
Which characteristic of goods refers to a person being able to be prevented from using it when they do not pay for it?
Excludable
Which category of goods is both excludable and rival in consumption?
Private goods
What is a person called who receives the benefit of a good but avoids paying for it?
Free rider
Which method can be used to overcome some of the problems associated with cost-benefit analysis?
Contingent valuation methods
Which one of these is an example of a common resource?
Clean Air
Which one of these is an example of a merit good?
Education
Which one of these is an example of a negative externality?
Barking dogs
Which one of these is an example of a private solution to externalities?
Social Norms of Moral Behavior
Which one of these is an example of a market-based policy towards externalities?
Pigovian tax
Which term refers to the tendency of a voter to not seek out information to make an informed choice in elections?
Rational ignorance effect
Which term refers to the situation where benefits to a minority special interest group are outweighed by the costs imposed on the majority?
Special interest effect
Which term refers to the agreement between politicians to exchange support on an issue?
Logrolling
Which term refers to the situation where individuals or groups take actions to redirect resources to generate income (rents) for themselves or the group?
Rent seeking
Which term refers to the transfer of publicly owned assets to private sector ownership?
Privatization
Which term refers to a situation where the allocation of resources in the market is determined in part by political decision-making and favors rather than by economic forces?
Cronyism
Which one of these is an example of a positive externality?
Restored historic buildings
Which one of these is an example of a positional externality?
Research into new technologies
Which one of these is an example of a private solution to externalities?
Social Norms of Moral Behavior
Which one of these is an example of a market-based policy towards externalities?
Marginal abatement cost
Which one of these is an example of government failure?
Public choice theory
Which of the following is an example of a public good?
National Defense
Which term refers to a person who receives the benefit of a good but avoids paying for it?
Free rider
Which category of goods is rival but not excludable?
Common resources
What is the property of a good whereby one person's use diminishes other people's use?
Rivalry
What is the study that compares the costs and benefits to society of providing a public good called?
Cost-benefit analysis
Which term refers to the situation where resources are redirected to generate income for a specific individual or group?
Rent seeking
What is the term for the transfer of publicly owned assets to private sector ownership?
Privatization
What is the term for a situation where the allocation of resources in the market is determined by political decision-making and favors rather than economic forces?
Cronyism
Which term refers to the tendency of a voter to not seek out information to make an informed choice in elections?
Rational ignorance effect
What is the term for the agreement between politicians to exchange support on an issue?
Logrolling
Test your knowledge on public goods, common resources, and merit goods with this quiz. Learn about the distinctions between public and private sectors and the roles they play in providing goods and services. Challenge yourself to understand the concepts and apply them to real-world examples.
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