6. Products that generate external costs are generally _____ or _____.

A.

over-produced; over-consumed

B.

under-produced; under-consumed

C.

well known; frequently ignored

D.

given attention; government regulated

7. Public goods are _____ and _____.

A.

nongeneric; very frequent

B.

neither helpful; not strategic

C.

nonrival; nonexcludable

D.

very common; very dependable

8. A nonrival good is one for which:

A.

one person’s consumption of the good does not diminish another person’s enjoyment of the good.

B.

once the good is provided no one can be prevented from enjoying the good.

C.

various goods do not compete with each other for success in the marketplace.

D.

firms manufacturing competitors of the good in question help to improve the good.

9. “Nonexcludable” means that:

A.

a good has all important product features bundled with the product.

B.

a good is available to very few consumers through very exclusive outlets.

C.

once a good is provided, no one can be prevented from enjoying it.

D.

no firms can be prevented from manufacturing a good.

10. Common property resources tend to be exploited quickly because:

A.

the resource is very attractive compared to available alternatives.

B.

it is not possible to prevent someone from using the resource.

C.

all such resources are commonly held through the government.

D.

consumers want to buy what other consumers have bought so they can have something in common with others.