Resource owners supply resources in ways that
a. maximize their utility
b. maximize their income
c. minimize the amount of work
d. maximize the amount of work
e. maximize the demand for their resource
QUESTION 2Suppose that the city builds a new park that is advertised as being open to the public, and within two months the grass in the park is ruined by overuse. This would be an example of
a. a nonrenewable resource
b. a private good
c. the common pool problem
d. a positive externality
e. a renewable and excludable resource
QUESTION 3Resource owners will supply additional units of a resource as long as
a. doing so increases their costs
b. doing so increases production
c. the quantity of the resource demanded exceeds the resource price
d. resource users demand the resource
e. doing so increases their utility
QUESTION 4To solve the common pool problem in fishing, governments can __________, or __________.
a. impose a depletion tax; prohibit resource use entirely
b. impose a depletion tax; restrict output
c. introduce an offsetting positive externality; prohibit resource use entirely
d. use a variable technology; impose a depletion tax
e. restrict output; prohibit resource use entirely
QUESTION 5An author who writes newspaper columns for 75 each is deciding whether to purchase a personal computer with a laser printer. She figures she'd be able to write two more columns per month than she could on her typewriter. She should
a. buy the computer if the monthly payment is less than 300
b. buy the computer regardless of its price
c. not buy the computer if the monthly payment is greater than 75
d. not buy the computer regardless of the price
e. buy the computer if the monthly payment is less than 150
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