An open-access resource is

A) rival and excludable.

B) nonrival and excludable.

C) rival and nonexcludable.

D) nonrival and nonexcludable.

A

C

B

D

Question 3

0.5/ 0.5pts

3) An example of a public good is

A) a home computer.

B) national defence.

C) a television.

D) a loaf of bread.

D

A

C

B

Incorrect

Question 4

0/ 0.5pts

4) Common resources are overused because

A) external costs are not considered.

B) the social benefits outweigh the private benefits.

C) social costs are controlled by production quotas.

D) the marginal private benefit will always exceed the marginal social cost

A

D

C

B

Incorrect

Question 5

0/ 0.5pts

5) Consider a remote village with a limited, freely available water supply and no government intervention in the allocation of water. In this case, each individual has an incentive to use water until their

A) social marginal cost is minimized.

B) social marginal benefit is maximized.

C) private and social marginal costs are equal.

D) private marginal benefit is zero.

E) private marginal cost is zero.