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Microeconomics, 2e (Acemoglu)
Chapter 9 Externalities and Public Goods
9.1 Externalities
1) An externality occurs when ________.

A) the quantity demanded of a good exceeds the quantity supplied
B) the quantity supplied of a good exceeds the quantity demanded
C) the government regulates production and consumption decisions
D) an economic activity affects third parties not engaged in the activity
Answer: D
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Externalities
2) Which of the following is the best definition of an externality?

A) When firms sell products at a price greater than marginal cost
B) When government intervention in a market reduces consumer surplus
C) When an economic activity imposes spillover costs or benefits on a third party
D) When a worker takes a job "off the books" to avoid paying taxes
Answer: C
Difficulty: Easy
3) The market demand curve for a good shows ________, and the market supply curve shows ________.
A) consumers' willingness to pay for the good; producers' marginal cost of producing the good
B) producers' marginal cost of producing the good; consumers' willingness to pay for the good
C) consumers' willingness to pay for the good; the opportunity cost of producing the good
D) consumers' willingness to pay for the good; producers' total cost of producing the good
Answer: A
Difficulty: Easy
4) A ________ occurs when an economic activity has a spillover cost that does not affect those directly
engaged in the activity.
A) positive externality
B) negative externality
C) gain in producer surplus
D) gain in consumer surplus
Answer: B
Difficulty: Easy
1
Copyright © 2018 Pearson Education, Inc.
5) Externalities essentially create ________.
A) non-excludability in consumption
B) non-rivalry in consumption
C) a divergence between private and social costs
D) a free-rider problem
Answer: C
Difficulty: Easy
AACSB: Application of Knowledge
6) Which of the following is NOT true regarding externalities?

A) Externalities have no effect on market efficiency.
B) Externalities are imposed on agents other than the parties to an economic exchange.
C) Externalities can be either positive or negative.
D) Externalities can occur in either consumption or production.
Answer: A
Difficulty: Medium
7) Traffic congestion is an example of a ________.

C) pecuniary externality
D) free-rider problem
Answer: B
Difficulty: Easy
Topic: A "Broken" Invisible Hand: Negative Externalities
8) The social cost of producing a good that generates negative externalities is the sum of the ________.
A) average variable cost and the average fixed cost of production
B) average total cost and the marginal cost of production
C) private cost and external costs of production
D) total fixed cost and the total variable cost of production
Answer: C
Difficulty: Easy
9) When the production of a good generates negative externalities, ________.

A) the fixed cost of production is zero
B) the variable cost of production is zero
C) the private cost of production exceeds the social cost of production
D) the social cost of production exceeds the private cost of production
Answer: D
Difficulty: Easy
2
10) When the production of a good involves negative externalities, the marginal social cost curve will
most likely ________.
A) be parallel to the horizontal axis
B) be parallel to the demand curve
C) lie above the supply curve
D) lie to the right of the supply curve
Answer: C
Difficulty: Easy
11) In a market, social surplus is maximized when consumers' willingness to pay for a good equals the
________.
A) marginal private cost of producing the good
B) average variable cost of producing the good
C) marginal social cost of producing the good
D) opportunity cost of producing the good
Answer: C
Difficulty: Easy
12) If negative externalities are present in a market, ________.

A) the market price is higher than the socially optimal price
B) the quantity supplied in the market is larger than the socially optimal level
C) the marginal social cost of production is lower than the marginal private cost
D) the average cost of production exceeds the marginal cost of production at all output levels
Answer: B
Difficulty: Easy
13) If the production of a good involves negative externalities, ________.

A) the quantity of the good supplied in the market is lower than the efficient level
B) the optimal price of the good is higher than the market price of the good
C) total welfare can be increased by increasing the production of the good
D) the average cost of production can be reduced by increasing output above the optimal level
Answer: B
Difficulty: Easy
3
14) Deadweight loss refers to the loss in ________.
A) producer surplus due to a fall in the market price of a good
B) consumer surplus due to an increase in the market price of a good
C) total surplus due to a market distortion, such as an externality
D) total surplus due to a change in consumers' preferences
Answer: C
Difficulty: Easy
The following figure shows the private cost and social cost of producing Good X.
15) Refer to the figure above. What does the region EFG represent?
A) Consumer surplus
B) Producer surplus
C) Deadweight loss
D) Economic profit
Answer: C
Difficulty: Medium
16) Refer to the figure above. Total welfare can be increased by ________.
A) increasing output above Q1 units
B) reducing output below Q1 units
C) lowering the market price below P1
D) increasing the market price above P2
Answer: B
Difficulty: Medium
4
17) Refer to the figure above. Social surplus will be maximized when the quantity supplied of Good X is
________.
A) Q1 units
B) Q2 units
C) greater than Q1 units
D) greater than Q2 units
Answer: B
Difficulty: Medium
18) Refer to the figure above. Which of the following statements is true in this case?
A) P1 is the socially optimal price for Good X.
B) P2 is the price of Good X in a free market.
C) Q2 units is the efficient level of output of Good X.
D) Q2 units is the quantity supplied of Good X in a free market.
Answer: C
Difficulty: Medium
5
Scenario: In Brazil, more than 60 percent of sugar cane grown is harvested by hand. In São Paulo state,
nearly 300,000 workers are employed in sugar cane harvesting. Manual harvesting requires burning the
cane fields prior to harvest to remove the cane's sharp leaves and drive snakes from the fields. Burning
the cane fields, however, gives off large quantities of ammonia and nitrogen oxide, which lead to ozone
creation. In São Paulo state, a layer of ash covers cars, and nitrogen oxide levels double during the
harvest period. The nitrogen oxide produced from burning the cane fields can lead to acid rain and
changes in water quality.
19) Refer to the scenario above. In the graph below, the socially optimal level of production occurs at
which point?
A) Q0
B) Q1
C) Q2
D) Q3
Answer: C
Difficulty: Medium
6
20) Refer to the scenario above. The deadweight loss arising from hand-harvesting is represented by area
in the graph below.
A) A
B) B
C) C
D) D
Answer: D
Difficulty: Medium
21) A chemical factory releases its by-products into a nearby river, which harms aquatic flora and fauna.
This is an example of a ________.
A) free-rider problem
D) positive externality
Answer: B
Difficulty: Medium
22) Which of the following is likely to generate a negative externality?

A) Smoking a cigarette
B) Planting a tree
C) Consuming vegetarian food
D) Working for long hours
Answer: A
Difficulty: Medium
7
23) Which of the following is likely to give rise to a negative externality?
A) A sudden increase in the price of wheat due to a fall in supply
B) A sudden increase in the demand for diamonds, leading to an increase in their prices
C) Deforestation, leading to the extinction of many species
D) Globalization, leading to creation of many new job opportunities
Answer: C
Difficulty: Hard
24) The marginal social cost of producing the last unit of a good is $1.10, while the consumers' willingness
to pay for the last unit is $0.80. The deadweight loss from the production of the last unit of the good is
________.
A) $1.10
B) $1.90
C) $0.50
D) $0.30
Answer: D
Difficulty: Medium
25) When does the marginal social cost of producing a good exceed the marginal private cost of
producing it?
Answer: If the production of a good generates a negative externality, the marginal social cost of
producing the good exceeds the marginal private cost of producing it.
Difficulty: Easy
8
The following figure shows the market supply and demand of a good whose production entails a $2
negative externality per unit.
26) Refer to the figure above. A total of ________ units of this good will be traded in this market, at the
price of ________.
A) 80; $6
B) 20; $2
C) 60; $8
D) 40; $4
Answer: A
Difficulty: Easy
27) Refer to the figure above. The socially optimal price for this good should be ________.
A) $6
B) $4
C) $8
D) $7
Answer: D
Difficulty: Medium
9
28) Refer to the figure above. The socially optimal quantity of this good should be ________ units.
A) 60
B) 70
C) 80
D) 100
Answer: A
Difficulty: Medium
29) Refer to the figure above. The total cost of this externality to the society is equal to ________.
A) $2
B) $10
C) $20
D) $40
Answer: C
Difficulty: Medium
30) Why does the presence of negative externalities in the production of a good lead to an overproduction
of the good?
Answer: If the production of a good generates negative externalities, the marginal social cost of
producing the good exceeds the marginal private cost of producing the good. However, the producers of
the good do not take this external cost into account and continue producing as long as the marginal
private benefit from production exceeds the marginal private cost. This leads to an overproduction of the
good.
Difficulty: Medium
10
31) The drainage of chemical fertilizers used on agricultural plots along the banks of the Blue River has
led to the formation of a dead zone in the river that cannot support aquatic life. Without any government
intervention, will the market for fertilizers produce a socially optimal quantity? Why or why not? Explain
your answer with the help of suitable diagrams.
Answer: The equilibrium quantity of a good in a free market is determined by the interaction of the
market forces of demand, D, and supply, S, as shown in the figure below.
The market demand curve represents the marginal private benefit, and the supply curve represents the
marginal private cost. However, in this case, the use of chemical fertilizers imposes an additional cost on
society that is not explicitly recognized by its buyers and sellers. As a result, the cost of producing each
unit of output increases. The marginal social cost curve (MSC; see the figure below) shows the higher cost
of producing each unit of the good.
Social well-being is maximized when Q2 units of fertilizers are traded in the market. Therefore, from the
figures, it is evident that in the presence of negative externalities, the market quantity is higher than the
socially optimal level. The optimal price that should be charged for Q2 quantity of fertilizers is P2, which
is higher than the market price P1.
Difficulty: Medium
11
32) If there are costly negative externalities associated with an economic activity and that activity is
carried out until the (private) marginal benefit equals the (private) marginal cost, then ________.
A) this activity should be subsidized
B) the social marginal net benefit is positive
C) the private cost exceeds social costs
D) too many resources are being allocated to this activity
Answer: D
Difficulty: Medium
33) If a ton of newspaper costs $350 to produce and in the process causes $10 worth of pollution damage
to the environment, then ________.
A) the private cost is $360 per ton
B) the social cost is $10 per ton and the private cost is $350 per ton
C) the private cost is $360 per ton and the social cost is $340 per ton
D) the social cost is $360 per ton and the private cost is $350 per ton
Answer: D
Difficulty: Easy
34) The presence of external benefits associated with production implies that ________.
A) private output exceeds the socially optimal output
B) private output is less than the socially optimal output
C) private output corresponds to the socially optimal output
D) any of the above, depending on the relative magnitude of social and private benefits
Answer: B
Difficulty: Easy
Topic: A "Broken" Invisible Hand: Positive Externalities
35) Suppose only dues-paying members of a private outdoor sports club can access a lake. Club members
who are operating their jet skis on the lake disrupt the bass fishing of other club members. This example
describes a ________.
A) positive externality in production
B) negative externality in production
C) positive externality in consumption
D) negative externality in consumption
Answer: D
Difficulty: Medium
12
36) Due to ongoing budget shortfalls, the city of Detroit has suspended services, such as street cleaning
and maintenance of city-owned properties in several neighborhoods. In response, some homeowners in
these neighborhoods sweep the streets, replace street lights, and mow the grass on city-owned lots. These
actions by homeowners represent ________.
A) a positive externality in consumption
B) a positive externality in production
C) deadweight loss
D) a pecuniary externality
Answer: B
Difficulty: Medium
37) Which of the following occurs when an economic activity has a spillover benefit on third parties not
engaged in the activity?
A) A negative externality
B) A positive externality
C) A gain in producer surplus
D) A gain in consumer surplus
Answer: B
Difficulty: Easy
38) A positive externality ________.

A) gives rise to external benefits
B) leads to increasing returns to scale
C) imposes an additional cost on society
D) leads to a higher economic profit
Answer: A
Difficulty: Easy
39) If positive externalities are present in a free market, ________ at any output level.
A) the marginal cost of production equals the average cost of production
B) the marginal social cost of production exceeds the marginal private cost
C) the marginal private benefit from production equals the marginal social benefit
D) the marginal social benefit of production exceeds the marginal private benefit
Answer: D
Difficulty: Easy
13
40) Which of the following occurs if the production of a good gives rise to positive externalities?
A) The marginal social cost curve lies to the right of the supply curve.
B) The marginal social cost curve lies to the left of the supply curve.
C) The marginal social benefit curve lies to the right of the demand curve.
D) The marginal social benefit curve lies to the left of the demand curve.
Answer: C
Difficulty: Easy
41) Which of the following is true if the production of a good gives rise to a positive externality?
A) The marginal social benefit from each level of output exceeds the consumers' willingness to pay.
B) The marginal private benefit from production exceeds the marginal social benefit.
C) The demand curve for the good shifts to the left in the presence of positive externalities.
D) The demand curve for the good shifts to the right in the presence of positive externalities.
Answer: A
Difficulty: Medium
42) The presence of a positive externality in a market leads to a(n) ________.

A) underproduction of a good
B) overproduction of a good
D) fall in consumer surplus
Answer: A
Difficulty: Easy
43) If the production of a good involves positive externalities, ________.

A) the market price of the good is higher than its optimal price
B) the market price of the good is lower than its optimal price
C) the average cost of production of the good in the long run is zero
D) the variable cost of production of the good is zero
Answer: B
Difficulty: Easy
14
44) The consumption of a good entails a $2 positive external benefit per unit. The following graph shows
the market supply and demand of this good. Which of the dashed lines represents the marginal social
benefit curve?
A) Line 1
B) Line 2
C) Line 3
D) Line 4
Answer: C
Difficulty: Medium
15
The following figure shows the market supply and demand of a good whose consumption entails a $2
positive external benefit per unit.
45) Refer to the figure above. ________ units of this good will be traded in this market, at the price of
________.
A) 8; $6
B) 2; $2
C) 6; $8
D) 4; $4
Answer: A
Difficulty: Easy
46) Refer to the figure above. The socially optimal price for this good should be ________.
A) $6
B) $4
C) $8
D) $7
Answer: D
Difficulty: Medium
16
47) Refer to the figure above. The socially optimal quantity of this good should be ________ units.
A) 6
B) 7
C) 8
D) 10
Answer: D
Difficulty: Medium
The figure below shows the demand, supply, and marginal social benefit curves for Good Y.
48) Refer to the figure above. The MSB curve lies to the right of the demand curve because the production
of Good Y involves ________.
A) positive externalities
B) negative externalities
C) increasing returns to scale
D) decreasing returns to scale
Answer: A
Difficulty: Easy
49) Refer to the figure above. The market price of Good Y is ________.
A) $10
B) $17
C) $22
D) $20
Answer: B
Difficulty: Easy
17
50) Refer to the figure above. How many units of Good Y will be supplied when the market is free?
A) 9 million
B) 16 million
C) 13 million
D) 20 million
Answer: C
Difficulty: Easy
51) Refer to the figure above. Social welfare will be maximized if ________ units of Good Y are produced.
A) 9 million
B) 20 million
C) 13 million
D) 16 million
Answer: D
Difficulty: Medium
52) Refer to the figure above. The triangular region ABC represents the ________.
A) deadweight loss due to the presence of a pecuniary externality
B) deadweight loss due to the presence of a negative externality
C) economic loss of not recognizing a positive externality
D) inefficiency created by not recognizing a negative externality
Answer: C
Difficulty: Medium
53) Refer to the figure above. Social surplus can be increased by ________.
A) increasing output above 13 million units
B) reducing output below 13 million units
C) charging a price of $10
D) charging a price of $22
Answer: A
Difficulty: Easy
54) The production of a certain fertilizer emits a gas that keeps away mosquitoes and other insects from
the surrounding community. This is an example of ________.
A) a positive externality
B) absolute advantage
C) a pecuniary externality
D) comparative advantage
Answer: A
Difficulty: Easy
18
55) Which of the following is most likely to give rise to a positive externality?
A) A sudden increase in the price of oil due to a supply shock
B) A decrease in the price of barley due to a good harvest
C) Deforestation leading to the extinction of many species
D) The consumption of a drug to cure a communicable disease
Answer: D
Difficulty: Hard
56) The local community of the town of Montesia decides to plant trees every month as part of its green
initiative. Which of the following is true?
A) The marginal social cost of planting trees is lower than the marginal private cost of planting trees.
B) The marginal private benefit from planting trees is higher than the marginal social benefit of planting
trees.
C) There is an external benefit from planting trees.
D) There is a deadweight loss in planting trees.
Answer: C
Difficulty: Medium
57) The marginal social benefit from the production of the last unit of a good is $4,800. If the willingness
to pay for that unit is $3,900, what is the external benefit from its production?
A) $900
B) $8,700
C) $3,800
D) $4,100
Answer: A
Difficulty: Hard
58) Which of the following activities is most likely to give rise to a positive externality?
A) Jogging every morning
B) Getting a flu vaccination
C) Consuming organic products
D) Buying a pair of gloves
Answer: B
Difficulty: Medium
19
59) Which of the following results in a positive externality?
A) Going to the beach
B) Recycling waste
C) Buying a room heater
D) Following a healthy lifestyle
Answer: B
Difficulty: Easy
60) If too little of a good is being produced in the free market, the production of the good is likely to have
a ________.
C) low per-unit cost of production
D) high opportunity cost of production
Answer: A
Difficulty: Easy
20
61) Cleanliness experts say that cleaning a house hygienically helps prevent the spread of germs in the
area. What is the inefficiency created by not recognizing the linkage between cleaning the house and
preventing the spread of germs? Explain with a suitable diagram.
Answer: The optimal quantity of a good in a free market is determined by the interaction of the market
forces of demand, D, and supply, S, as shown in the figure below.
The market demand curve represents the marginal private benefit, and the supply curve represents the
marginal private cost. In this case, the cleaning of a house creates external social benefits. The marginal
social benefit curve, or MSB curve, in the diagram below represents the private and external benefits of
cleaning each additional house.
Houses will be cleaned until the marginal cost of cleaning one more house equals the marginal private
benefit derived from cleaning, not the marginal social benefit. Therefore, only Q1 number of houses will
be cleaned, even though Q2 houses need to be cleaned to maximize social well-being.
Difficulty: Hard
21
Scenario: Vacant houses, foreclosed or abandoned, are typically boarded up with plywood that many
people consider unsightly and likely to invite vandalism. An alternative is clear plastic (polycarbonate)
panels. The figure below shows the demand and the supply of polycarbonate panels used for boarding
up houses in a hypothetical town. To answer some of the questions below, it will be useful to find the
equations of the three lines in the figure.
62) Refer to the scenario above. Use of polycarbonate panels to board up vacant houses has a ________.
A) negative externality
B) positive externality
D) gain in consumer surplus
Answer: B
Difficulty: Easy
63) Refer to the scenario above. For each additional polycarbonate panel generates ________ worth of
social benefit beyond the private marginal benefit.
A) $100
B) $75
C) $60
D) $0
Answer: C
Difficulty: Easy
22
64) Refer to the scenario above. If only the private marginal benefits are taken into account, then ________
panels will be bought at ________ per panel. Use the equations for the demand and the supply curves.
A) 70; $70
B) 60; $60
C) 50; $60
D) 60; $70
Answer: A
Difficulty: Medium
65) Refer to the scenario above. If the private marginal benefits as well as external benefits are taken into
account, then ________ panels will be bought at ________ per panel. Use the equations of the demand and
the supply curves.
A) 90; $90
B) 100; $80
C) 80; $100
D) 100; $100
Answer: D
Difficulty: Medium
66) Refer to the scenario above. The deadweight loss associated with ignoring external benefits is
________. Use the equations of the demand and the supply curves.
A) $900
B) $1,000
C) $1,150
D) $1,275
Answer: A
Difficulty: Medium
67) A ________ externality occurs when a market transaction affects others through market prices.
A) positive
B) negative production
C) negative consumption
D) pecuniary
Answer: D
Difficulty: Easy
Topic: Pecuniary Externalities
23
68) Which of the following gives rise to a pecuniary externality?
A) Excessive consumption of alcohol leading to bad health
B) A sudden increase in the demand for diamonds, leading to an increase in their prices
C) Deforestation, leading to the extinction of many species
D) Globalization, leading to the displacement of indigenous workers
Answer: B
Difficulty: Hard
69) Jack wants to buy a new house. But the surge in housing demand over the past few months has led to
a sharp increase in housing prices, making it impossible for him to buy one on his current income. This is
an example of a ________.
D) conspicuous externality
Answer: C
Difficulty: Medium
70) The increasing popularity of hot dogs in a food joint has pushed up their prices, making it
unaffordable for many students living in the surrounding areas. This is an example of a ________.
D) free-rider problem
Answer: C
Difficulty: Easy
71) Which of the following is necessary for markets to operate efficiently?

A) A positive externality
B) A negative externality
C) A pecuniary externality
D) Free-riding
Answer: C
Difficulty: Easy
24
72) What are pecuniary externalities? Explain with the help of an example.
Answer: A pecuniary externality occurs when a market transaction affects other people through market
prices. For example, if a large number of consumers decide to purchase a car, the price of the car will
increase due to an increase in demand. This creates a pecuniary externality for other potential buyers of
the car in the form of higher prices.
Difficulty: Easy
9.2 Private Solutions to Externalities
1) An economic agent ________ when he accounts for the full costs and benefits of his actions.
A) is called a free rider
B) internalizes an externality
C) maximizes his profit
D) is called a rent seeker
Answer: B
Difficulty: Easy
Topic: Private Solutions to Externalities
2) Which of the following occurs when an externality is internalized?

A) An increase in social well-being
B) An increase in private benefit
C) An increase in deadweight loss
D) An increase in returns to scale
Answer: A
Difficulty: Easy
Topic: Private Solutions to Externalities
Scenario: Ron plays loud music, which prevents his neighbor from studying. He knows that his neighbor
values studying at $5,000, while the cost of soundproofing Ron’s room is $3,000.
3) Refer to the scenario above. Which of the following problems is likely to occur?
A) The tragedy of commons
B) A free-rider problem
C) A pecuniary externality
D) A negative externality
Answer: D
Difficulty: Medium
Topic: Private Solution: Bargaining
25
4) Refer to the scenario above. If Ron has the right to listen to music at night, how much does his neighbor
need to pay him to stop playing music?
A) Any amount above $5,000
B) Any amount below $3,000
C) Any amount between $3,000 and $5,000
D) Any amount between $5,000 and $8,000
Answer: C
Difficulty: Medium
5) Which of the following will lead to an efficient private solution if negative externalities are present in a
market?
A) The government paying a subsidy to the parties involved in generating externalities
B) The party creating the externality having legal property rights
C) The party suffering from the externality having legal property rights
D) The parties involved negotiating with each other and reaching an agreement
Answer: D
Difficulty: Easy
6) When does a private solution to a negative externality fail to allocate resources efficiently?
Answer: Private bargaining between the party generating a negative externality and the party suffering
from it leads to an efficient allocation of resources. However, such a private solution fails to allocate
resources efficiently when the transaction costs associated with bargaining are too high and the number
of affected people is large.
Difficulty: Easy
7) Beth can earn $7,500 renting out her house. However, her neighbor has a pet dog that chases anybody
who comes to look at the house. Because her neighbor has the right to keep his pet untied, Beth is unable
to find a tenant. If her neighbor values keeping his pet untied at $1,500, what will the efficient outcome be
in this case?
Answer: An efficient outcome in this case can be achieved if Beth strikes a private deal with her
neighbor convincing him to keep his pet indoors. Because Beth can earn $7,500 renting out her house and
her neighbor values keeping his pet outdoors at $1,500, total well-being can be increased if Beth pays her
neighbor an amount between $1,500 and $7,500 to keep his pet indoors.
Difficulty: Medium
26
Scenario: The following figure shows the private cost and social cost of producing Good X. Firm A is the
producer of Good X. The production plant and Bob's house are located next to a river. However, the plant
is upstream, and Bob's house is downstream. Since production pollutes the river, Bob suffers from a
negative externality.
8) Refer to the scenario above. What is the value of the negative externality imposed on Bob when the
firm produces to maximize its private net benefits?
A) (b d) e
B) (a c) f
C) d e
D) c f
Answer: B
Difficulty: Medium
9) Refer to the scenario above. What is the value of the negative externality imposed on Bob when the
firm produces the socially optimal quantity?
A) (b d) e
B) (a c) f
C) d e
D) c f
Answer: A
Difficulty: Medium
27
10) Refer to the scenario above. If the property rights to the river belong to the firm, what is the maximum
transfer between the two party necessary to make the firm produce the socially optimal quantity?
A) A payment of ((a c) f) ((b d) e) from the firm to Bob
B) A payment of ((a c) f) ((b d) e) from Bob to the firm
C) A payment of (a c) (f e)/2 from the firm to Bob
D) A payment of (b d) (f e)/2 from Bob to the firm
Answer: B
Difficulty: Hard
11) Refer to the scenario above. If the property rights to the river belong to the firm, what is the minimum
transfer between the two party necessary to make the firm produce the socially optimal quantity?
A) A payment of ((a c) f) ((b d) e) from the firm to Bob
B) A payment of ((a c) f) ((b d) e) from Bob to the firm
C) A payment of (a c) (f e)/2 from the firm to Bob
D) A payment of (b d) (f e)/2 from Bob to the firm
Answer: D
Difficulty: Hard
12) In 1973, economist Steven N. S. Cheung wrote an article demonstrating that private bargaining
between beekeepers and agricultural producers achieved the efficient outcome in the market for
pollination services in Washington state ("The Fable of the Bees: An Economic Investigation." Journal of
Law and Economics 16, no. 1 (1973): 11—33). Strong colonies of honeybees are necessary for pollinating
some crops, and they also increase yields. Colonies that are co-located with good pollen sources produce
more honey. Suppose the following facts describe the market for pollination services for seed alfalfa in
Washington state: seed alfalfa growers harvest an additional $4,000 worth of alfalfa seed when honeybees
are co-located with their crop; beekeepers realize an additional $1,500 worth of honey when their bee
colonies are co-located with alfalfa; and the cost of moving to another alfalfa grower's field is $500. What
amount of payment from the alfalfa grower to the beekeeper will result in a market for pollination
services that achieves the efficient outcome? Explain your answer.
A) $0
B) $500
C) $2,000
D) $5,000
Answer: C
Explanation: Any payment from the alfalfa grower to the beekeeper that exceeds $1,000 (the gain in the
value of honey minus the relocation cost) and is less than $4,000 (the gain in value of alfalfa seed harvest
to the grower) will result in (1) a mutually advantageous trade and (2) the creation of a market for
pollinating services that achieves the efficient outcome.
Difficulty: Hard
28
Scenario: The following excerpt is from Timothy R. Hylan, Maureen J. Lage, and Michael Treglia, "The
Coase Theorem, Free Agency, and Major League Baseball: A Panel Study of Pitcher Mobility from 1961 to
1992" ( Southern Economic Journal 62, no. 4 (1996): 1029—42).
Many economists and legal scholars interpret the [Coase] theorem as containing two propositions. The
first is that, in the absence of transactions costs and wealth effects, parties will bargain to an efficient
outcome. The second holds that the same outcome will be achieved regardless of the distribution of
property rights. … Major League Baseball [MLB] presents a natural experiment consisting of an industry
in which there has been an explicit change in the assignment of property rights. Beginning in 1879, … a
player could negotiate salary only with the team that owned his contract and the team could trade or sell
the player as management saw fit. In 1976 this system was replaced by the institution of free agency
whereby a player with at least six years of Major League experience acquired the right to sell his services
to prospective buyers…. The empirical analysis shows that after the introduction of free agency, the
pitchers with greater longevity in the major leagues are less likely to move relative to their mobility in the
pre-free agency period. The results also indicate that, in general, better pitchers are less likely to move
and that pitchers playing on teams with higher winning percentages or in large market cities were less
likely to move.
13) Refer to the scenario above. If the Coase Theorem holds for baseball playing services in MLB, which of
the following should be expected after the introduction of free agency?
A) Free agents will be paid more than non-free agents.
B) Pattern of mobility (changing teams) by players with similar characteristic and performance should be
similar before and after the introduction of free agency.
C) Outcome of bargaining between teams and players will be inefficient after the introduction of free
agency.
D) Free agents will be less likely to be unemployed than non-free agents.
Answer: B
Difficulty: Easy
Topic: The Coase Theorem
14) Refer to the scenario above. What does the empirical analysis by these researchers imply?
A) MLB incurred a large loss of revenue after 1976.
B) Players who became free agents were able to negotiate a better terms than non-free agents.
C) The Coase Theorem does not hold for baseball playing services in MLB.
D) The Coase Theorem holds for baseball playing services in MLB.
Answer: C
Difficulty: Easy
29
15) Refer to the scenario above. Which of the following could be a cause for different patterns of player
mobility in MLB before and after 1976?
A) Property rights for players' services are not clearly defined in MLB.
B) The number of teams relative to the number of players is large.
C) MLB is a monopoly in professional baseball games in the United States.
D) Transaction costs are associated with negotiating with individual free agents.
Answer: D
Difficulty: Hard
16) Which of the following is the best description of the Coase Theorem?
A) Tariffs can improve economic efficiency.
B) Public goods are over-provided by the private market.
C) Bargaining between private parties to an economic exchange results in an efficient allocation of
resources.
D) Only the government can force private parties to internalize externalities.
Answer: C
Difficulty: Easy
17) Which of the following is a reason that the Coase Theorem does not work in practice?
A) Transaction costs
B) Taxes
C) Lack of clearly defined property rights
D) Number of agents involved in bargaining
Answer: B
Difficulty: Easy
18) The cost of making an economic exchange is called a(n) ________ cost.
A) sunk
B) transaction
C) social
D) accounting
Answer: B
Difficulty: Easy
30
Scenario: A chemical factory is located upstream on a river. The factory dumps its liquid waste into the
river. A microbrewery is located downstream on this river; it uses the river water in its production
process and values the clean water. The chemical factory can filter its liquid waste before dumping it into
the river, but it would be costly to the factory. The table below shows the profit to these two businesses
under different circumstances.
Profit with Filtering Profit without Filtering

Chemical factory $1,000 $800
Microbrewery $400 $100
19) Refer to scenario above. Suppose the negotiation between the chemical factory and microbrewery is
costless. What is the maximum that the microbrewer would be willing to pay the chemical factory to filter
its waste?
A) $100
B) $200
C) $300
D) $400
Answer: C
Difficulty: Easy
20) Refer to scenario above. Suppose the negotiation between the chemical factory and microbrewery is
costless. What is the minimum offer that the chemical factory would be willing to accept from the
microbrewery to to filter its waste?
A) $100
B) $200
C) $300
D) $400
Answer: B
Difficulty: Easy
21) Refer to scenario above. Could this externality problem be resolved by private negotiations between
the chemical factory and the microbrewery?
A) Yes, but only when the negotiations are relatively costless.
B) Yes, but the chemical factory should be forced to pay a fine for polluting the river.
C) No, because filtering the waste decreases the profit of the chemical factory.
D) No, because dumping the waste into the river is free for the chemical factory.
Answer: A
Difficulty: Easy
31
22) Refer to scenario above. Suppose the microbrewery has the right to clean water. What would the
Coase Theorem suggest as the resolution of this negative externality conflict between these two firms?
A) The microbrewery pays $200 to the chemical factory to filter its waste before dumping it into the river.
B) The chemical factory voluntarily filters its waste before dumping it into the river.
C) The chemical factory pays $200 to the microbrewery to get permission to dump into the river.
D) The chemical factory pays $300 to the microbrewery to get permission to dump into the river.
Answer: B
Difficulty: Medium
23) Refer to scenario above. Suppose the chemical factory has the right to dump its waste into the river.
What would the Coase Theorem suggest as the resolution of this negative externality conflict between
these two firms?
A) The microbrewery pays $100 to the chemical factory to filter its waste before dumping it into the river.
B) The chemical factory voluntarily filters its waste before dumping it into the river.
C) The microbrewery pays $250 to the the chemical factory to filter its waste before dumping it into the
river.
D) The chemical factory pays $300 to the microbrewery to get permission to dump into the river.
Answer: A
Difficulty: Medium
24) Which of the following is an implication of the Coase Theorem?

A) Bargaining cannot lead to an efficient allocation of resources.
B) Government intervention is not always necessary to solve externality problems.
C) Negotiation leads to an efficient outcome if transaction costs are high.
D) Taxation leads to an efficient allocation of resources regardless of who holds the property rights.
Answer: B
Difficulty: Easy
25) Private solutions to externalities are most effective if ________.

A) the transaction costs associated with bargaining are low
B) the transaction costs associated with bargaining are high
C) property rights are not defined clearly
D) a large number of people are affected by the externalities
Answer: A
Difficulty: Easy
32
26) The Coase Theorem relies on internalizing externalities through ________.
A) social enforcement mechanisms
B) the provision of corrective subsidies
C) the imposition of corrective taxes
D) negotiations between the parties involved
Answer: D
Difficulty: Medium
27) What does the Coase Theorem predict?

Answer: The Coase Theorem predicts that if the production or consumption of a good involves a
negative externality, bargaining between the party creating the externality and the party suffering from it
will result in an efficient allocation of resources. Bargaining leads to a socially efficient outcome,
irrespective of who holds the legal property rights if transaction costs are not too high.
Difficulty: Easy
28) In episode 12 of the sixth season of The Sopranos, A. J. is watching television with his girlfriend Bianca
at her apartment when a group of neighborhood youths begins playing music at a very loud level
outside. A. J. approaches the youths and offers them his new mountain bike if they will stop playing the
music and leave. The group of youths accepts the mountain bike and leaves. This scene is an example of
________.
A) pecuniary externality
B) high transaction costs preventing bargaining from reaching the efficient outcome
C) the large number of parties involved in an exchange preventing bargaining from reaching the efficient
outcome
D) the Coase Theorem
Answer: D
Difficulty: Medium
29) Energy Star is a voluntary labeling program designed to identify and promote energy-efficient
products to reduce greenhouse-gas emissions. In this example, ________ is used to solve an externality.
A) the Coasian approach
B) the Pigouvian approach
C) a command-and-control mechanism
D) a social enforcement mechanism
Answer: D
Difficulty: Easy
Topic: Private Solution: Doing the Right Thing
33
30) The Trump administration proposes to de-fund the Energy Star program. If the program is
discontinued, we would expect ________.
A) the deadweight loss from greenhouse gas emissions to increase
B) an end to negative externalities in the consumption of consumer electronics
C) producers to raise the price of consumer electronics
D) private parties to achieve the efficient outcome through bargaining
Answer: A
Difficulty: Medium
31) People seldom break a line while waiting for checkout in a supermarket. In this example, ________ is
used to solve an externality.
A) the Coasian approach
B) the Pigouvian approach
C) a command-and-control mechanism
D) a social enforcement mechanism
Answer: D
Difficulty: Easy
34
9.3 Government Solutions to Externalities
1) Government invention is required to solve externality problems if ________.

A) transaction costs associated with private negotiations are low
B) the number of people affected by the externality is small
C) the number of people affected by the externality is large
D) property rights are clearly defined
Answer: C
Difficulty: Easy
Topic: Government Solutions to Externalities
Scenario: Vacant houses, foreclosed or abandoned, are typically boarded up with plywood that many
people consider unsightly and likely to invite vandalism. An alternative is clear plastic (polycarbonate)
panels. The figure below shows the demand and the supply of polycarbonate panels used for boarding
up houses in a hypothetical town. Suppose that there are 140 houses that are vacant and the town council
makes it illegal to use plywood to board them up, leaving only polycarbonate panels as an alternative. To
answer some of the questions below, it will be useful to find the equations of the three lines in the figure.
2) Refer to the scenario above. The council's action is an example of ________.

A) a command-and-control policy
B) a market-based policy
C) a corrective tax
D) a corrective subsidy
Answer: A
Difficulty: Easy
Topic: Government Regulation: Command-and-Control Policies
35
3) Refer to the scenario above. What would be the price of a polycarbonate panel after the ban on
plywood?
A) $200
B) $150
C) $140
D) $100
Answer: C
Difficulty: Easy
4) Refer to the scenario above. What is the deadweight loss associated with the council's action relative to
the socially efficient outcome?
A) $400
B) $900
C) $1,200
D) $1,600
Answer: A
Difficulty: Medium
5) A government regulation that bans the use of a certain polluting technology in the production of a
good is an example of a ________ used to solve an externality.
A) social enforcement mechanism
B) command-and-control approach
C) market-based approach
D) Coasian approach
Answer: B
Difficulty: Medium
6) A law stating that power plants are allowed zero emissions of sulfur dioxide is an example of ________.
A) the Coase Theorem
B) command-and-control regulation
C) a Pigovian corrective tax
D) a Pigovian corrective subsidy
Answer: B
Difficulty: Easy
36
7) Oil production by oil companies that use fracking can impose a ________ in the form of ________.
A) positive externality; higher employment rate
B) positive externality; lower oil price
C) negative externality; earthquakes
D) negative externality; higher oil price
Answer: C
Difficulty: Easy
Topic: Evidence-Based Economics: What Can the Government Do to Lower the Number of Earthquakes in
Oklahoma?
8) The practice of fracking by the oil and gas companies produces saltwater as its by-product. The
disposal of the saltwater can lead to earthquakes. What did the government of the state of Oklahoma do
to reduce the number of earthquakes in the state?
A) It fined the oil and gas companies a certain fee per each earthquake.
B) It banned the practice of fracking.
C) It put a limit on how much saltwater the oil and gas companies could dispose of.
D) It let the market forces achieve the socially optimal outcome by themselves.
Answer: C
Difficulty: Medium
Oklahoma?
9) Which of the following is a market-based alternative to the Kansas state government's approach to
reduce earthquakes as described in the textbook?
A) Impose a tax according to the amount of saltwater injected
B) Impose a tax according to the number of earthquakes
C) Pay a subsidy to homeowners whose houses are damaged by earthquakes
D) Pay a subsidy to oil companies to develop an extraction technology that requires less saltwater
Answer: A
Difficulty: Medium
Oklahoma?
10) A Pigouvian tax is a tax designed to ________.

A) induce the consumers of a good to reduce their consumption of the good
B) induce the producers generating negative externalities to reduce production
C) induce the producers generating positive externalities to reduce production
D) force the producers to stop the production of a good in the short run
Answer: B
Difficulty: Easy
Topic: Government Regulation: Market-Based Approaches
37
11) The production of an industrial good in a plant emits harmful gases that cause breathing problems.
Which of the following will happen if the government imposes a Pigouvian tax on the plant?
A) The marginal external cost will increase.
B) The marginal private cost will fall.
C) The quantity supplied of the good will decrease.
D) The demand for the good will increase.
Answer: C
Difficulty: Medium
12) When a Pigouvian tax is imposed, ________.

A) the marginal private cost curve shifts upward
B) the demand curve shifts rightward
C) the marginal social cost curve shifts downward
D) the marginal social benefit curve shifts downward
Answer: A
Difficulty: Medium
13) A steel-producing factory in North Palladia generates large amounts of carbon dioxide during its
production process. A per-unit tax on the production of steel that equals the marginal ________ of steel
production will entirely internalize the externality.
A) private cost
B) social cost
C) external cost
D) external benefit
Answer: C
Difficulty: Medium
14) Most municipalities and states in the northeastern United States use rock salt to "produce" ice-free
roadways in the face of winter snowstorms. But using rock salt has several drawbacks: it speeds up
corrosion of bridges and cars; it can choke vegetation; as runoff, it is harmful to creeks and rivers; and it is
not very effective in de-icing roads at low temperatures. If the marginal private cost of rock salt is $60 per
ton and the marginal external cost of rock salt is $10 per ton, the optimal corrective tax is ________.
A) $10 per ton
B) $50 per ton
C) $60 per ton
D) $70 per ton
Answer: A
Difficulty: Medium
38
15) Smoking increases the risk of lung infections not only for active smokers but also for other people
inhaling the smoke passively. Which of the following will help reduce smoking?
A) A corrective tax
B) Life insurance
C) Health insurance
D) A corrective subsidy
Answer: A
Difficulty: Medium
Scenario: The production of a good creates a negative externality. The following figure shows the market
for this good.
16) Refer to the scenario above. The socially optimal price for this good is ________, while the market
price of it is equal to ________.
A) $14; $10
B) $20; $10
C) $20; $14
D) $14; $20
Answer: C
Difficulty: Medium
39
17) Refer to the scenario above. The socially optimal level of output for this good is ________, while the
market produces ________.
A) Q1; Q2
B) Q1; Q3
C) Q2; Q3
D) Q2; Q1
Answer: A
Difficulty: Medium
18) Refer to the scenario above. To restore the socially optimal outcome in this market, the government
should ________.
A) levy a $6 tax per unit on this good
B) levy a $10 tax per unit on this good
C) pay a $6 subsidy per unit on this good
D) not intervene in the market, as the market will provide the socially optimal outcome by itself
Answer: B
Difficulty: Medium
19) A corrective subsidy induces the ________ toward the socially optimal level.
A) consumers affected by a negative externality to increase the quantity consumed
B) producers creating a negative externality to increase the quantity produced
C) consumers benefiting from a positive externality to increase the quantity consumed
D) producers generating a positive externality to reduce the quantity produced
Answer: C
Difficulty: Easy
20) A Pigouvian subsidy leads to a socially efficient outcome by ________.

A) raising individuals' marginal benefit from consumption
B) lowering firms' marginal private cost of production
C) lowering individuals' marginal benefit from consumption
D) lowering firms' marginal external cost of production
Answer: A
Difficulty: Easy
40
21) Which of the following happens when a Pigouvian subsidy is provided?
A) The marginal social cost curve shifts upward.
B) The marginal private cost curve shifts downward.
C) The marginal social benefit curve shifts downward.
D) The marginal private benefit curve shifts upward.
Answer: D
Difficulty: Easy
22) Which of the following is true?

A) If the consumption of a good gives rise to a positive externality, it can be internalized by taxing the
producers of the good.
B) If the production of a good gives rise to a negative externality, it can be internalized by taxing the
producers of the good.
C) If the production of a good gives rise to a positive externality, it can be internalized by taxing the
consumers of the good.
D) If the consumption of a good gives rise to a negative externality, it can be internalized by subsidizing
the purchase of the good.
Answer: B
Difficulty: Easy
23) A vaccination against a disease helps prevent the spread of the disease. Which of the following can
help increase the number of people vaccinated to the socially optimal level?
A) A corrective subsidy
B) An income tax
C) An insurance policy
D) A health tax
Answer: A
Difficulty: Medium
24) If the consumption of a good involves a positive externality, how can consumers be encouraged to
consume more of the good?
Answer: If the consumption of a good involves a positive externality, the marginal social benefit derived
from the good exceeds the marginal private benefit. However, the consumers of the good do not take this
additional benefit into consideration and continue consuming only as long as the marginal private benefit
from consumption exceeds the marginal private cost. In this case, if the consumption of the good is
subsidized, the marginal private benefit from consumption will increase, causing consumers to consume
more.
Difficulty: Medium
41
25) What is a Pigouvian tax?
Answer: A Pigouvian tax, or a corrective tax, is a tax designed to induce producers of a negative
externality to reduce production to the socially optimal level.
Difficulty: Easy
26) If the production of a chemical in a factory releases a harmful gas, how can the government maximize
social well-being in the economy?
Answer: The production of the chemical generates negative externalities because it imposes an
additional cost on the society. As a result, the marginal social cost of producing each unit of output is
higher than the marginal private cost. In the figure below, the marginal social cost curve (MSC) denotes
the higher cost of producing each unit of output.
According to the figure, social well-being is maximized if Q2 units of the chemical are traded in the
market. The factory, however, will continue production until the marginal private benefit of producing a
unit of the chemical equals the marginal private cost of producing it, not the marginal social cost.
Therefore, Q1 units of the chemical are sold in the free market.
If a per-unit tax equal to the marginal external cost of production is imposed on chemical production, the
marginal private cost of production will become equal to the marginal social cost. The marginal private
cost curve (S = MPC) will shift to the left and will coincide with the marginal social cost curve (MSC). As
a result, the factory will now produce Q2 units of the chemical, and social well-being will be maximized.
Difficulty: Medium
27) Efficient government intervention requires that ________.

A) the costs of government enforcement be zero
B) the marginal benefits of intervention be equal to the marginal costs of intervention
C) intervention should continue until all negative externalities have been eliminated
D) there be no productivity losses in the private sector as a result of government intervention
Answer: B
Difficulty: Easy
42
28) In practice, assessing the benefits and costs of a proposed government program is difficult because
________.
A) the effects of the program may be difficult to determine
B) many benefits and costs occur in the distant future
C) some costs and benefits are difficult, perhaps impossible to quantify
D) all of the above
Answer: D
Difficulty: Easy
29) It is inefficient for the government to charge a price for consuming a good, such as weather forecasts,
because ________.
A) too many forecasts will be produced
B) the price cannot be set to cover all research costs
C) no one will be willing to pay for these forecasts
D) the marginal cost of providing this information to another consumer is zero
Answer: D
Difficulty: Easy
30) A Pigouvian tax is also called a(n) ________.

A) subjective tax
B) objective tax
C) corrective tax
D) subsidy
Answer: A
Difficulty: Easy
31) If the government taxed away all profits in a market economy, the likely result would be ________.
A) a more rapid shift of resources to expanding industries
B) the removal of the incentive for resource allocation
C) improved market signals and responses
D) enhanced efficiency in resource allocation
Answer: B
Difficulty: Medium
43
32) Suppose the federal government implements a system of tradeable permits that lets power plants buy
and sell the right to emit sulfur dioxide. This is an example of ________.
A) the Coase Theorem
B) a market-based regulatory approach
C) a Pigovian corrective tax
D) a Pigovian corrective subsidy
Answer: B
Difficulty: Medium
Scenario: Currently, major corn-growing states, such as Iowa, use large amounts of nitrogen-based
fertilizers. Many of Iowa's corn-growing regions are characterized by karst topography (water erodes the
limestone bedrock and forms sinkholes, caves, and underground streams). In karst landscapes, runoff
from corn fields contains high levels of nitrogen in the form of nitrates, which can pollute private and
municipal water wells. Suppose the demand and supply for corn are:
Corn Demand: QD = 70 - 5p,

Corn Supply: QS = 10p - 5,
where quantity is millions of bushels of corn and price is dollars per bushel. The marginal private benefit
of corn and the marginal private cost of corn production can be derived by rewriting demand and supply
with price as a function of quantity:
Inverse Demand: p = 14 - 0.2Q

Marginal Private Benefit: MPB = 14 - 0.2Q
Inverse Supply: p = 0.1Q + 0.5
Marginal Private Cost: MPC = 0.1Q + 0.5
Suppose the marginal external cost (MEC) of nitrogen fertilizer use in corn growing is a constant $1.50
per bushel, so MEC = 1.5. The marginal social cost (MSC) is:
MSC = MPC + MEC = 0.1Q + 0.5 + 1.5

MSC = 0.1Q + 2
44
The figure below shows these marginal benefits and marginal costs.
33) Refer to the scenario above. The private market equilibrium price is ________ per bushel, and the
private market equilibrium quantity is ________ bushels.
A) $4; 50 million
B) $5; 40 million
C) $5; 45 million
D) $6; 40 million
Answer: C
Difficulty: Hard
34) Refer to the scenario above. The social optimum occurs at a price of ________ per bushel and a
quantity of ________ bushels.
A) $4; 35 million
B) $5; 30 million
C) $5; 45 million
D) $6; 40 million
Answer: D
Difficulty: Hard
45
35) Refer to the scenario above. The optimal corrective ________ is ________ per bushel. Explain your
answer.
A) subsidy; $1.50
B) tax; $1.50
C) tax; $4.50
D) tax; $6.00
Answer: B
Explanation: Set the Pigovian corrective tax = MEC at social optimum = $1.50 per bushel.
Difficulty: Medium
36) Refer to the figure below. The deadweight loss arising in the private market equilibrium is area
________ and is equal to ________.
A) A; $60 million
B) B; $3.75 million
C) C; $3.75 million
D) D; $23.75 million
Answer: B
Difficulty: Hard
46
37) Pay-As-You-Throw programs that charge people a small price for each bag of trash they throw out are
likely to ________.
A) increase waste creation
B) increase recycling and reuse
C) increase the social cost of waste disposal
D) reduce social surplus
Answer: B
Difficulty: Easy
Topic: Letting the Data Speak: Pay As You Throw
9.4 Public Goods
1) Private goods are ________.

A) excludable but non-rival in consumption
B) non-excludable and non-rival in consumption
C) non-excludable but rival in consumption
D) excludable and rival in consumption
Answer: D
Difficulty: Easy
Topic: Public Goods
2) If a good is excludable, ________.

A) one person's use of the good reduces the amount of the good available to others
B) people can be prevented from using the good
C) more than one person cannot use the good at the same time
D) several people can use the good simultaneously
Answer: B
Difficulty: Easy
Topic: Public Goods
3) A good is non-rival in consumption if ________.

A) one person's use of the good does not preclude consumption by others
B) the government can regulate its production
C) people cannot be prevented from using it
D) the demand for the good increases with an increase in the consumer's income
Answer: A
Difficulty: Easy
Topic: Public Goods
47
4) Public goods are ________ in consumption.
A) excludable but non-rival
B) non-excludable and non-rival
C) rival but non-excludable
D) excludable and rival
Answer: B
Difficulty: Easy
Topic: Public Goods
5) Which of the following is an example of an ordinary private good?

A) Furniture
B) The Internet
C) Water
D) Cable TV
Answer: A
Difficulty: Easy
Topic: Public Goods
6) Which of the following is an example of a public good?

A) National defense
B) Natural forests
C) Music downloads
D) Designer clothes
Answer: A
Difficulty: Easy
Topic: Public Goods
7) ________ are highly excludable but non-rival in consumption.

A) Public goods
B) Private goods
C) Common pool resource goods
D) Club goods
Answer: D
Difficulty: Easy
Topic: Public Goods
8) ________ are non-excludable but rival in consumption.

A) Public goods
B) Private goods
C) Common pool resource goods
D) Club goods
Answer: C
Difficulty: Easy
Topic: Public Goods
48
9) ________ are non-excludable in consumption.
A) Public goods and private goods
B) Public goods and common pool resource goods
C) Private goods and club goods
D) Club goods and common pool resource goods
Answer: B
Difficulty: Easy
Topic: Public Goods
10) ________ are non-rival in consumption.

A) Public goods and private goods
B) Public goods and club goods
C) Public goods and common pool resource goods
D) Private goods and common pool resource goods
Answer: B
Difficulty: Easy
Topic: Public Goods
11) An online newspaper is an example of a(n) ________.

A) ordinary private good
B) common pool resource
C) public good
D) club good
Answer: D
Difficulty: Easy
Topic: Public Goods
12) ________ is an example of a common pool resource good.

A) Food
B) Water
C) National defense
D) Wi-Fi
Answer: B
Difficulty: Easy
Topic: Public Goods
13) Which of the following is an example of a club good?

A) Streetlights
B) A diamond ring
C) Forests
D) Cable TV
Answer: D
Difficulty: Easy
Topic: Public Goods
49
14) A concert in a crowded auditorium is ________ in consumption.
A) non-excludable and non-rival
B) excludable but non-rival
C) excludable and rival
D) non-excludable but rival
Answer: C
Difficulty: Medium
Topic: Public Goods
15) Rides in a public park are ________ in consumption.

A) non-excludable and non-rival
B) excludable but non-rival
C) excludable and rival
Answer: D
Difficulty: Medium
Topic: Public Goods
16) The view of a spectacular sunset on a beach is a(n) ________.

A) rival and excludable good
B) excludable good
C) non-rival good
D) rival but non-excludable good
Answer: C
Difficulty: Easy
Topic: Public Goods
17) Suppose your roommate approaches you and asks if you would like to split the cable bill for your
apartment. You decline, citing that you are not home often and are more likely to stream content on your
laptop. Your roommate purchases a deluxe cable package, and you frequently watch programs on the
television in your apartment. This is an example of a ________.
A) common pool resource
B) club good
C) free-rider problem
D) government provision
Answer: C
Difficulty: Easy
Topic: Public Goods
50
18) Most of the goods produced in an economy are ________.
A) private goods
B) public goods
C) club goods
D) inferior goods
Answer: A
Difficulty: Easy
Topic: Public Goods
19) Which of the following is an example of a public good?

A) A house in a tourist destination
B) A training program for a company's employees
C) A radio broadcast
D) A magazine subscription
Answer: C
Difficulty: Medium
Topic: Public Goods
20) Which of the following goods is rival in consumption and is also excludable?
A) A fireworks display
B) A movie shown on cable television
C) A DVD
D) A magic show in a public park
Answer: C
Difficulty: Easy
Topic: Public Goods
21) A room heater is a ________.

A) club good because it is excludable but non-rival in consumption
B) club good because it is non-excludable but rival in consumption
C) public good because it is non-excludable and non-rival in consumption
D) private good because it is excludable and rival in consumption
Answer: D
Difficulty: Hard
Topic: Public Goods
22) A street light is a ________.

A) private good
B) public good
C) common pool resource good
D) club good
Answer: B
Difficulty: Medium
Topic: Public Goods
51
23) Pay-per-view broadcasts are ________.
A) public goods
B) private goods
C) club goods
D) common pool resource goods
Answer: C
Difficulty: Medium
Topic: Public Goods
24) A congested street is ________ in consumption.

A) excludable and rival
B) non-excludable but rival
C) excludable but non-rival
D) non-excludable and non-rival
Answer: B
Difficulty: Medium
Topic: Public Goods
25) ________ occurs when an individual has no incentive to pay for a good because failure to pay does not
prevent consumption.
A) A free-rider problem
B) The paradox of thrift
C) A tragedy of the commons
D) The paradox of plenty
Answer: A
Difficulty: Easy
Topic: Public Goods
26) Which of the following correctly completes the following table?
High Excludability Low Excludability

High Rivalry x y
Low Rivalry z w
A) x = Public Good; y = Private Good; z = Common Pool Resource; w = Club Good

B) x = Private Good; y = Public Good; z = Club Good; w = Common Pool Resource
C) x = Public Good; y = Common Pool Resource; z = Private Good; w = Club Good
D) x = Private Good; y = Common Pool Resource; z = Club Good; w = Public Good
Answer: D
Difficulty: Medium
Topic: Public Goods
52
27) A free rider is a person who ________.
A) can produce a good at a very low cost
B) only consumes products provided by the government
C) receives the benefit of a good without paying for it
D) purchases products available for discounts
Answer: C
Difficulty: Easy
Topic: Public Goods
28) The free-rider problem exists for goods that are ________.
A) excludable
B) rival
C) free
D) non-excludable
Answer: D
Difficulty: Easy
Topic: Public Goods
29) The free-rider problem may arise in the case of ________.

A) public goods
B) private goods
C) club goods
D) inferior goods
Answer: A
Difficulty: Easy
Topic: Public Goods
30) Which of the following is likely to have a free-rider problem?

A) On-the-job training programs
B) Environmental protection programs
C) Movie DVDs
D) Mobile phones
Answer: B
Difficulty: Easy
Topic: Public Goods
53
31) Rural/Metro–a private, subscription-based fire protection and emergency service provider–was
founded by Lou Witzeman in 1948. Witzeman lived in an unincorporated suburb of Phoenix that did not
provide fire-fighting services. Witzeman canvassed his neighbors and found that nearly all of them
promised to pay him $10/year to provide fire protection. After investing his last $900 in a truck and
firefighting equipment, most of his neighbors refused to pay him. This is an example of a ________.
A) government provision
B) free-rider problem
C) common pool resource
D) club good
Answer: B
Difficulty: Medium
Topic: Public Goods
32) Four roommates have moved into an apartment. However, none of them clean the apartment,
thinking that the others will do it. This is an example of ________.
A) the free-rider problem
B) the paradox of thrift
C) the paradox of plenty
D) the tragedy of commons
Answer: A
Difficulty: Hard
Topic: Public Goods
33) You bought a subscription for an online magazine and shared your log-in details with a friend. Your
friend is a ________ in this case.
A) free-rider
B) rent seeker
C) speculator
D) hedger
Answer: A
Difficulty: Easy
Topic: Public Goods
34) The local community in a town has arranged for a fireworks show in a park located in the center of
town. The cost of the ticket to watch the show is $5. However, only 40 percent of the tickets are sold, as
spectators can watch the show without entering the park. This is an example of ________.
A) the free-rider problem
B) the paradox of thrift
C) the paradox of plenty
D) the tragedy of the commons
Answer: A
Difficulty: Medium
Topic: Public Goods
54
35) The citizens of a country often refuse to pay voluntarily for national defense because ________.
A) national defense is a common pool resource
B) nobody can be excluded from being defended by the state
C) all citizens do not derive equal satisfaction from national defense
D) national defense is rival in consumption
Answer: B
Difficulty: Medium
Topic: Public Goods
Scenario: Suppose there are only three houses on a street. The following table shows each homeowner's
willingness to pay for street lights. It costs $700 to install a street light.
Homeowner 1's Homeowner 2's Homeowner 3's

Willingness Willingness Willingness
to Pay to Pay to Pay
First street light $400 $300 $710
Second street light $350 $200 $300
Third street light $200 $110 $100
Fourth street light $100 $30 $40
36) Refer to the scenario above. The socially optimal number of street lights for this street is ________.
A) 0
B) 1
C) 2
D) 3
Answer: C
Difficulty: Hard
Topic: Public Goods
37) Refer to the scenario above. If each homeowners on this street is left to purchase streetlights
independently, then Homeowner 1 would purchase ________, Homeowner 2 would purchase ________,
and Homeowner 3 would purchase ________ streetlight(s).
A) 1; 0; 2
B) 1; 1; 2
C) 0; 0; 2
D) 0; 0; 1
Answer: D
Difficulty: Hard
Topic: Public Goods
55
38) Alex is a non-union employee in a steel factory in the southern district of Berylia. The union workers
of the factory are able to negotiate certain benefits for the employees. Alex enjoys all the benefits, even
though he does not pay the union fee. This is an example of ________ behavior.
A) rent-seeking
B) free-riding
C) profit-maximizing
D) rationally ignorant
Answer: B
Difficulty: Hard
Topic: Public Goods
39) Why are public goods non-rival in consumption? Explain with a real-world example.
Answer: A public good like national defense is non-rival in consumption. This is because the enjoyment
of national security by a citizen of a country does not reduce the level of security enjoyed by others.
Difficulty: Medium
Topic: Public Goods
40) What is the difference between club goods and common pool resource goods? Give one example of
each type of good.
Answer: Club goods are highly excludable but non-rival in consumption, while common pool resources
are non-excludable but rival in consumption. One example of a club good is a pay-per-download Web
site, and an example of a common pool resource is a natural lake.
Difficulty: Easy
Topic: Public Goods
41) Why do people refuse to pay for public goods?

Answer: People often refuse to pay for public goods because these goods are non-excludable and non-
rival in consumption. A person can enjoy a public good without paying for it because nobody can be
excluded from its consumption and consumption by one individual does not reduce the amount available
for consumption by others.
Difficulty: Medium
Topic: Public Goods
42) How is the market demand curve for a public good derived?
Answer: The market demand curve for public goods is derived by the vertical summation of the
demand curves of consumers. Adding the individual demand curves vertically gives the measure of the
amount of money consumers are willing to pay for each level of the public good.
Difficulty: Easy
Topic: Public Goods
56
43) Classify each of the following goods on the basis of the characteristics of excludability and rivalry in
consumption, giving appropriate reasons.
a) A lighthouse
b) A pair of shoes
c) A paid Web site
d) A congested non-toll road
Answer:
a) A lighthouse is non-excludable in consumption, because nobody can be prevented from using it. It is
also non-rival in consumption, because its use by one person will not reduce the quantity available to
others.
b) A pair of shoes is excludable in consumption, because people who do not pay for it can be prevented
from using it. It is also rival in consumption, because it can be used by only one person at a time.
c) A paid Web site is excludable but non-rival in consumption, because people who do not pay for its use
can be prevented from using it, but its use by one person will not restrict its use by others.
d) A congested road is non-excludable but rival in consumption, because even though nobody can be
excluded from its use, its use by one individual will reduce the space available for others.
Difficulty: Easy
Topic: Public Goods
44) An environmental awareness program was launched in a certain community, and all residents in the
community were asked to contribute to its functioning. After a month, the program had to be
discontinued due to a lack of funds. Why did the program not receive sufficient funds? Explain your
answer.
Answer: A community program, such as the one mentioned here, is an example of a public good. Like
all public goods, it is non-excludable and non-rival in consumption. None of the residents in the
community can be prevented from enjoying the benefits of the program, and the enjoyment of its benefits
by one individual does not reduce the amount enjoyed by others. Because nobody can be excluded from
its consumption, people can enjoy the benefits of the program without paying for it. Therefore, nobody in
the community had an incentive to contribute to its functioning. As a result, the program had to be
discontinued due to a lack of funds. This is an example of the free-rider problem in the consumption of
public goods.
Difficulty: Medium
Topic: Public Goods
57
Scenario: Frank and Nancy live in a small community on Cape Cod in Massachusetts. For simplicity,
assume Frank and Nancy are the only individuals in the community. Each has a demand for mosquito
control, given by the following table, equations, and figure. Assume that mosquito control is a public
good. Mosquito control is provided at a constant marginal cost of $120.
Frank's demand: qFrank = 200 - p,

Frank's inverse demand = (Marginal Private Benefit): p = 200 - q,
Nancy's demand: qNancy = 100 - p,
Nancy's inverse demand = (Marginal Private Benefit): p = 100 - q,
58
45) Refer to the scenario above. In the private market equilibrium, what are the quantities demanded of
mosquito control for Frank and Nancy? Explain your answer.
A) 0 units for Frank, 0 units for Nancy
B) 80 units for Frank, 0 units for Nancy
C) 80 units for Frank, 10 unit for Nancy
D) 120 unit for Frank, 20 unit for Nancy
Answer: B
Explanation: Frank demands 80 units of mosquito control (where his marginal private benefit equals
marginal cost), and Nancy demands 0 units of mosquito control. Nancy is able to free-ride on Frank's
provision, so she enjoys the benefits of 80 units of mosquito control as well. This results in
underprovision relative to the social optimum.
Difficulty: Hard
Topic: Public Goods
59
46) Refer to the scenario above. Now suppose that mosquito control will be publicly provided. What is
the market equilibrium quantity of mosquito control services provided? Explain your answer graphically.
A) 0 units
B) 80 units
C) 90 units
D) 120 units
Answer: C
Explanation: The following figure graphs the answer.
Difficulty: Hard
AACSB: Analytical Thinking, Application of Knowledge
Topic: Public Goods
60
The following figure depicts the demand of Ann, the demand of Bob, and the market demand for Good
X. Assume that all demands are linear.
47) Refer to the figure above. If Good X is a private good, what is the market price when the total quantity
demanded on the market is 3?
A) $8
B) $14
C) $12
D) $10
Answer: D
Difficulty: Hard
Topic: Public Goods
48) Refer to the figure above. If Good X is a private good, what is the total quantity demanded on the
market if the market price is $4?
A) 8
B) 14
C) 12
D) 10
Answer: C
Difficulty: Hard
Topic: Public Goods
49) Refer to the figure above. If Good X is a public good, what is the market price when the total quantity
demanded on the market is 3?
A) $8
B) $14
C) $12
D) $10
Answer: B
Difficulty: Hard
Topic: Public Goods
61
50) Refer to the figure above. If Good X is a public good, what is the total quantity demanded on the
market if the market price is $4?
A) 8
B) 14
C) 12
D) 10
Answer: A
Difficulty: Hard
Topic: Public Goods
51) To avoid inefficient exclusion, the government often provides for free ________ but ________ goods
and services.
A) rivalrous; excludable
B) non-rivalrous; excludable
C) rivalrous; non-excludable
D) non-rivalrous; non-excludable
Answer: B
Difficulty: Medium
Topic: Public Goods
52) Suppose Phillip and Mathew are the only tenants in a building. The owner of the building is
considering installing surveillance cameras in the building. The following table shows the amount that
Phillip and Mathew are willing to pay for each additional camera.
Number of Surveillance Phillip's Willingness Mathew's Willingness

Cameras to Pay to Pay
1 $400 $300
2 $310 $200
3 $210 $110
4 $80 $30
If the cost of installing each surveillance camera is $320, how many cameras will the owner of the
building install?
Answer: The owner of the building will continue installing cameras until the marginal cost of installing
an additional camera equals the marginal benefit from its installation. The marginal benefit from the
installation of a camera can be estimated from the total willingness to pay for an additional camera. Thus,
the owner will continue installing cameras as long as the total willingness to pay for a camera exceeds the
marginal cost. The total willingness to pay for the first surveillance camera is $400 + $300, or $700, which
exceeds the marginal cost of $320. Therefore, the first camera will be installed. The total willingness to
pay for the second camera is $310 + $200, or $510. Therefore, the second camera will also be installed. The
total willingness to pay for the third camera is $210 + $110, or $320, which equals the marginal cost.
Therefore, the third camera will also be installed. Because the total willingness to pay for the fourth
camera is lower than the marginal cost, only three cameras will be installed.
Difficulty: Hard
Topic: Public Goods
62
Scenario: Jim and Jane are the only residents of an apartment building. The figures below show their
demand curves for security guards (in hours of duty per day) who staff the entrance to the apartment. To
answer some of the questions below, it will be useful to find the equations of the two lines in the figure.
53) Refer to the scenario above. To construct the market (Jim and Jane) demand curve for security guards,
you must add the two curves ________, since security guard's service is ________.
A) horizontally; a rival good and exclusive
B) horizontally; a rival good but non-exclusive
C) vertically; exclusive but non-rival
D) vertically; non-rival and non-exclusive
Answer: D
Difficulty: Medium
Topic: Public Goods
54) Refer to the figure above. What is the maximum amount of money Jim and Jane together would pay
to have 24 hours of security guards' presence?
A) $32.50 per hour
B) $28.75 per hour
C) $16.50 per hour
D) $10.00 per hour
Answer: D
Difficulty: Medium
Topic: Public Goods
63
55) Refer to the figure above. What is the maximum amount of money Jim and Jane together would pay
to have 15 hours of security guards' presence?
A) $32.50 per hour
B) $28.75 per hour
C) $16.50 per hour
D) $10.00 per hour
Answer: A
Difficulty: Medium
Topic: Public Goods
56) Refer to the figure above. If the price of security guards' time is $40 per hour, how many hours of
guards' time would be demanded?
A) 18 hours
B) 12 hours
C) 9 hours
D) 4 hours
Answer: B
Difficulty: Medium
Topic: Public Goods
57) Refer to the figure above. If the market supply of guards' time is as in the figure below, what is the
optimal number of guard's time for Jim and Jane?
A) 18 hours
B) 12 hours
C) 9 hours
D) 4 hours
Answer: B
Difficulty: Medium
Topic: Public Goods
64
58) Five players are given $10 each and asked to contribute a portion of it to the sports development fund.
They are told that the total collection will be doubled and distributed equally among each of them. In this
case, the players are likely to contribute ________.
A) $5 each
B) $10 each
C) $1 each
D) nothing
Answer: D
Difficulty: Easy
Topic: Choice and Consequence: The Free-Rider's Dilemma
59) To derive the market demand for a public good, ________.

A) horizontally sum individual demands
B) vertically sum individual demands
C) horizontally sum individual firm marginal cost curves
D) vertically sum individual firm marginal cost curves
Answer: B
Difficulty: Medium
Topic: Government Provision of Public Goods
60) A video available on a Web site that allows free download is a ________.
A) private good
B) public good
C) club good
D) common pool resource
Answer: B
Difficulty: Easy
61) The government should provide an additional unit of a public good if ________.
A) the marginal cost of providing the additional unit of the good equals the social cost of providing the
additional unit
B) the marginal cost of providing the additional unit of the good exceeds the marginal benefit
C) the marginal benefit exceeds the marginal cost of providing the additional unit of the good
D) the marginal cost of providing the additional unit of the good exceeds the average cost of providing
the additional unit
Answer: C
Difficulty: Easy
65
62) Which of the following is true?
A) The market demand curve for a public good is always perfectly elastic.
B) The market demand curve for a private good has a positive slope.
C) The market demand curve for a public good is obtained by the horizontal summation of individual
demand curves.
D) The market demand curve for a public good is obtained by the vertical summation of individual
demand curves.
Answer: D
Difficulty: Easy
63) Tom is willing to contribute $400 toward building a public park, Jack is willing to contribute $500, and
Joe is willing to contribute $750. What is the total value of the park if Tom, Jack, and Joe are the only
residents in the neighborhood where the park is being built?
A) $1,650
B) $1,050
C) $3,300
D) $2,350
Answer: A
Difficulty: Medium
64) The total willingness to pay for public restrooms in a city is given in the table below.
Number of Restrooms Total Willingness to Pay

1 $208,000
2 $199,000
3 $150,000
4 $85,000
If the marginal cost of building a public restroom is $208,000, how many restrooms will be built?
A) 1
B) 2
C) 3
D) 4
Answer: A
Difficulty: Easy
66
65) Four friends decide to have a party every Saturday. They decide to pool the money to spend on the
parties. The table below shows the maximum amount each friend is willing to contribute to each party.
Number of parties Peter Mary Kate Jacob

First party $250 $340 $120 $215
Second party $200 $270 $100 $160
Third party $135 $80 $70 $100
Fourth party $60 $100 $25 $40
If the cost of each party is $225, how many parties should they have to maximize total surplus?
A) 1
B) 2
C) 3
D) 4
Answer: D
Difficulty: Medium
9.5 Common Pool Resource Goods
1) Suppose you live in a housing co-op with eleven other college students. The kitchen is constantly a
mess; virtually nobody in the house cleans up, and the sink is overflowing with dirty dishes. This is an
example of ________.
A) a private good
B) a private provision
C) a club good
D) the tragedy of the commons
Answer: D
Difficulty: Medium
Topic: Common Pool Resource Goods
2) The tragedy of the commons occurs because some goods are ________ in consumption.
A) excludable
B) non-excludable but rival
C) non-rival and non-excludable
D) non-rival
Answer: B
Difficulty: Medium
67
3) Which of the following can result in the tragedy of the commons?
A) The use of common pool resources above the socially optimal level
B) A low level of satisfaction derived from the use of common pool resources
C) A high rate of taxation on common pool resources
D) The tendency of consumers to use common pool resources without paying for them
Answer: A
Difficulty: Easy
4) Overfishing leading to a rapid depletion of the stock of fish is an example of the ________.
A) tragedy of the commons
C) paradox of thrift
D) prisoners' dilemma
Answer: A
Difficulty: Medium
5) Electricity generated from coal-burning plants is relatively cheap, but the plants contribute to global
warming due to their high level CO2 emissions. The negotiations between developed and developing
countries to cut back on coal electricity has failed in the past. This is an example of the ________.
Answer: A
Difficulty: Medium
6) A retired athlete built a gym near her house that could be used for free by all the residents in the
neighborhood. However, the overuse of the facilities soon led to irreparable damages. This is an example
of the ________.
B) pecuniary externality
Answer: A
Difficulty: Medium
68
7) What causes the overexploitation and depletion of common pool resource goods?
Answer: Common pool resources are overexploited because these resources are non-excludable in
consumption. However, these goods are rival in consumption. Therefore, the overexploitation of these
resources leads to their depletion.
Difficulty: Medium
8) Free access and unrestricted mining of iron ore led to the depletion of the iron ore deposits in
Rockland. As a result, several economic activities were adversely affected. What caused the
overexploitation of these resources when their conservation could have benefited the consumers in the
economy?
Answer: Common pool resources, such as free-access mines, are non-excludable but rival in
consumption. The consumption of such goods gives rise to a negative externality. Each individual, while
consuming the goods, only considers his or her own cost of using the good without realizing that this use
of the good reduces the amount available to others. This leads to an overexploitation and depletion of
these resources. This phenomenon is called the tragedy of the commons and explains the depletion of the
iron ore deposits in Rockland.
Difficulty: Medium
Scenario: The following excerpt is from Michael A. McPherson and Michael L. Nieswiadomy, "African
Elephants: The Effects of Property Rights and Political Stability," Contemporary Economic Policy 18, no. 1
(2007).
African elephant populations have declined by more than 50% over the past 20 years. International
outrage over the slaughter led to a worldwide ban on ivory sales beginning in 1989, despite the objections
of many economists and scientists, and of several southern African countries that have established
systems of property rights over elephants. Far from declining, elephant populations in many of these
countries have increased to levels at or above the carrying capacity of the ecosystem. This article
estimates the determinants of changes in elephant populations in 35 African countries over several time
periods. The authors find that, controlling for other factors, countries with property rights systems or
community wildlife programs have more rapid elephant population growth rates than do those countries
that do not. Political instability and the absence of representative governments significantly lower
elephant growth rates.
9) Refer to the scenario above. Which of the following is consistent with a solution to the elephant
population decline described in the quote?
A) Assigning the property rights creates an incentive for owners to manage the resource so it is not
depleted.
B) Banning the trade of a declining resource is an effective way of managing it.
C) Government ownership of a declining resource protects it from depletion.
D) There is no effective solution to management of common pool resources.
Answer: A
Difficulty: Easy
69
10) Refer to the scenario above. Which of the following is consistent with a solution to the elephant
population decline described in the quote?
A) Political instability is the main cause of decline in common pool resources.
B) Prohibition of trade of some resources is necessary even when property rights for them are well
established.
C) Property rights could alleviate tragedy of commons problems in the absence of representative
government.
D) Property rights without an authority to enforce it may be ineffective.
Answer: D
Difficulty: Medium
11) Which of the following is NOT an example of the tragedy of the commons?
A) Extracting water extraction from aquifers
B) Cutting trees on public land
C) Fishing on a private lake
D) Eating from the office donut box
Answer: C
Difficulty: Medium
12) The poaching of African elephants for their tusks is a serious problem facing many African nations.
One solution is to establish large fenced-in "parks," where elephants are ranched similar to beef cattle on
ranches in the western United States. Maintaining elephant herds in large enclosed park-like areas solves
the problem of ________.
A) low excludability
B) non-rivalness in consumption
C) public provision
D) the free rider
Answer: D
Difficulty: Medium
13) Your roommate claims we can understand the near-extinction of the American bison during the latter
half of the nineteenth century in America as an economic phenomenon. Since bison herds were ________
"owned," they were a ________, and buffalo hunters generated a ________ externality when hunting
them, as the hunters failed to consider how overharvesting could reduce herd numbers in the future.
A) publicly; common resource pool good; negative
B) publicly; club good; negative
C) privately; common resource pool good; positive
D) privately; club good; negative
Answer: A
Difficulty: Medium
70
14) A green pasture has turned barren due to overgrazing. This has happened because the pasture was
________.
A) excludable and rival
B) non-excludable and non-rival
C) excludable but non-rival
Answer: D
Difficulty: Easy
Topic: Choice and Consequence: Tragedy of the Commons
15) Which of the following is NOT a solution to the tragedy of the commons?
A) levying a tax on the use of the common resource
B) privatizing the common resource
C) ration the use of the common resource
D) granting a subsidy of the use of the common resource
Answer: D
Difficulty: Easy
Topic: Choice and Consequence: Tragedy of the Commons
16) The solution to the "tragedy of the commons" in street traffic congestions in London was ________.
A) to run an advertise campaign to persuade drivers to use other routes
B) to let the market solve the problem by itself
C) to build a new highways
D) to levy a toll on the highway use
Answer: D
Difficulty: Easy
Topic: EBE: How Can the Queen of England Lower Her Commute Time to Wembley Stadium?
17) The congestion charge is an example of ________ to the negative externality associated with common
pool resources.
A) a command-and-control government solution
B) a market-based government solution
C) a social norm solution
D) a private bargaining solution
Answer: B
Difficulty: Easy
Topic: Evidence-Based Economics: How Can the Queen of England Lower Her Commute Time to Wembley
Stadium?
71
18) What constitutes evidence for the efficacy of the congestion charge described in the text?
A) The total emission from vehicles in the regulated area of London declined after the introduction of the
congestion charge.
B) The distance traveled by all private vehicles in the regulated area of London declined after the
introduction of the congestion charge, while more distance was traveled by public transportation.
C) The distance traveled by private vehicles in the regulated area of London declined after the
introduction of the congestion charge, while more distance was traveled by high-occupancy vehicles and
low-emission vehicles.
D) The revenue to the city government of London has dramatically increased.
Answer: C
Difficulty: Easy
Topic: Evidence-Based Economics: How Can the Queen of England Lower Her Commute Time to Wembley
Stadium?
72
Another random document with
no related content on Scribd:
l’orthographe des mots que sur leur prononciation, et certaines règles
même sont encore restées communes à toute la province. Ainsi l’e
muet, qui caractérise les terminaisons féminines en Français, est
rendu par un a bref et sourd:
Fein-na. Femme.
Fi-llia. Fille.
Dans la Basse-Auvergne, la terminaison au pluriel est plus

accentuée:
Las fennas. Les femmes.
Las fillias. Les filles.
Le ch se change en ts, tsch, soit:

Tsanta. Chante.
Tsalour. Chaleur.
Tschi. Chien, etc.
J se prononce dz, dj; ainsi:

Im dzou. Un jour.
Di-djau. Jeudi.
Dans l’Auvergne méridionale, la prononciation tend à se

rapprocher davantage de la langue mère; on en fait surtout la
remarque dans les mots qui expriment une augmentation ou une
diminution; il en résulte une couleur et une harmonie que l’on ne
rencontre pas ailleurs. L’on dit ainsi:
Chapeau. Tsapé.
Grand chapeau. Tsapelas.
Petit chapeau. Tsapelou.
Homme. Omë. Omenass. Omenou.

Femme. Feinna. Feinass. Feinou.
Feinetta. Feinnouna, etc.
Quelques mots ont conservé une forme qui se rapproche plus du

Latin:
Adzuda, aider, du Latin adjutum;
Espeita, attendre, — expeto;
Ligna, branche, — lignum;
Londa, boue, — lutum;
Puzët, bouton, — pusula, etc., etc.
Le commencement de la Parabole de l’Enfant prodigue va montrer

le vocabulaire auvergnat mis en œuvre:
En ome aviot dous garçons, lou pè dzouïne diguet à soun païre: donna mé la
part dé l’iéritadge qué mé reveit?
Lon païre lour partadzed sa fourteuna.
Quasques dzours après, lou dzouïne garçon ramassé soun bé, e partiguét per
voudiaza diens un païs estrandgé, é dissipét ati tout ço qu’aviot en débaoutza, etc.,
etc.
L’Auvergne a produit des Troubadours célèbres, parmi lesquels on

peut citer, comme un des plus anciens, Pierre Rogiers, qui vivait au
commencement du XIIe siècle. Nommons encore le Dauphin et
l’évêque de Clermont dont les satires ne manquaient ni d’esprit ni d’à-
propos; Peyrols, connu surtout par ses sirventes militaires en faveur
des croisades; le moine de Montaudon, dont les poésies licencieuses
devaient s’accorder bien mal avec les règles et l’austérité d’un cloître;
aussi le voit-on jeter sa robe aux orties et courir les amoureuses
aventures. On ne saurait oublier la belle Castelloza, femme du
seigneur de Mairona, qui a laissé de très gracieuses poésies. Enfin,
l’abbé Caldagnès, auteur d’un recueil de poésies auvergnates publié
en 1733, a, dans une lettre intercalée dans l’exemplaire que possède
la Bibliothèque nationale et portant la date de 1739, formulé sur le
patois et la langue Française une opinion généralement admise
aujourd’hui:
Je conviens de bonne foi que la langue Auvergnate est aujourd’hui un vrai patois;
mais j’espère que vous voudrez bien convenir avec moi que ce patois et le Français
ont des aïeux communs. Le Français a eu le bonheur d’avoir été chéri de nos
anciens rois; ils l’ont ennobli, tous les courtisans à leur exemple, et tous les beaux
esprits lui ont rendu successivement de grands services; cependant, malgré tant de
faveurs, il y a quatre ou cinq cents ans qu’il n’était, tout au plus, qu’un petit noble de
campagne, à qui les élus de ce temps-là pouvaient fort bien disputer la noblesse, et
qu’il n’était en vérité guère plus riche que son frère le roturier...
Il faut également citer les Poésies auvergnates de Joseph
Pasturel, imprimées à Riom en 1733, chez Thomas, et réimprimées en
1798. On y remarque des notes sur l’orthographe et la prononciation
de l’Auvergnat, et sur les progrès que faisait le Français en Auvergne
à cette époque.
Les provinces de Dauphiné et de Bresse, qui comprennent
aujourd’hui les départements des Hautes-Alpes, la Drôme, l’Isère et
l’Ain, ont subi l’influence du Français plus tôt que les autres, à cause
de leur proximité avec les pays faisant partie de la monarchie
française. Cependant la langue Romane y fut longtemps en usage; on
l’y désignait sous le nom de Materna.
Aujourd’hui encore, les paysans du Grésivaudan ont un idiome qui
se rapproche beaucoup du Roman. Le patois des Hautes-Alpes a de
grands rapports avec le Provençal et le Languedocien, et les
différences portent plus sur la prononciation que sur l’orthographe. Un
fait curieux à constater, c’est que ce patois se parle très purement
dans certains pays d’Allemagne qui, probablement, servirent de refuge
aux émigrés forcés de quitter successivement le sol natal, lors de la
révocation de l’édit de Nantes. Le Dauphinois a de la grâce; il est riche
en expressions pittoresques et imitatives, et sa poésie se prête avec
beaucoup de charme aux pastorales et récits champêtres. Dans la
bibliographie du patois du Dauphiné, par Colomb de Batines, nous
trouvons une pièce charmante, d’un esprit délicat et gracieux,
attribuée à Dupuy, de Carpentras, maître de pension à Nyons:
LOU PARPAYOUN
Picho couquin dé parpayoun,

Vole, vole, té prendraï proun!
Et poudre d’or su séïs alête,
Dé mille coulour bigara,
Un parpayoun su la viooulête
Et pieï su la margaridète
Voulestréjave dins un pra.
Un enfan, pouli coume un angé,
Gaoute rounde coume un arangé,
Mita-nus, voulave après éou,
Et pan!... manquave; et piei la bise
Qué bouffave din sa camise,
Fasié véiré soun picho quiéou...
Picho couquin de parpayoun,
Vole, vole... té préndrai proun!
Anfin lou parpayoun s’arréste
Sus un boutoun d’or printanié,
Et lou bel enfan pér darnié
Ven d’aisé, ben d’aïsé.—êt pieï, leste!
Din sei man lou faï présounié,
Alors vite à sa cabanète,
Lou porte amé mille poutoun
Maï las! quan drube la présoun
Trove plu dédin seï manète
Qué poudre d’or dé séïs alète!
Picho couquin dé parpayoun, etc.
Comme les autres provinces méridionales, le Dauphiné a fourni un

nombre assez considérable de Troubadours et de poètes en tous
genres: Ogier, qui vivait vers la fin du XIIe siècle; Folquet de Romans et
Guillaume Mayret, qui furent, suivant la renommée, les meilleurs
jongleurs du Viennois; Raymond Jordan, vicomte de Saint-Antoni, dont
il est dit dans l’Histoire des Troubadours qu’il était bel homme, vaillant
en armes, et faisant aussi bien les vers que l’amour; Albert de Sisteron
(du Gapençois), fils du jongleur Nazur, poète, mais surtout musicien;
J. Millet, qui, en 1633, fit paraître la Pastorale et Tragi-Comédie de
Janin, la Pastorale de la Constance de Philin et Margoton, la
Bourgeoise de Grenoble.
Le voyage de Racine dans le Midi de la France nous permet de
connaître le jugement du grand poète français sur le dialecte de
Valence. Sa septième lettre, datée de 1661, relate les petits ennuis
qu’il eut à subir dans ce pays dont le langage qu’il ne connaissait pas
encore, lui paraissait composé d’Espagnol et d’Italien:
J’avais commencé dès Lyon à ne plus guère entendre le langage du pays, et à
n’être plus intelligible moi-même. Ce malheur s’accrut à Valence et Dieu voulut
qu’ayant demandé à une servante un pot de chambre elle mît un réchaud sous mon
lit. Vous pouvez vous imaginer les suites de cette maudite aventure, et ce qui peut
arriver à un homme endormi qui se sert d’un réchaud dans ses nécessités de nuit.
Mais c’est encore bien pis dans ce pays. Je vous jure que j’ai autant besoin d’un
interprète qu’un Moscovite en aurait besoin dans Paris. Néanmoins, je commence à
m’apercevoir que c’est un langage mêlé d’Espagnol et d’Italien, et, comme j’entends
assez bien ces deux langues, j’y ai quelquefois recours pour entendre les autres et
pour me faire entendre. Mais il arrive souvent que je perds toutes mes mesures,
comme il arriva hier, qu’ayant besoin de petits clous à broquette pour ajuster ma
chambre, j’envoyai le valet de mon oncle en ville, et lui dis de m’acheter deux ou
trois cents de broquettes; il m’apporta incontinent trois boîtes d’allumettes; jugez s’il
y a sujet d’enrager en de semblables malentendus. Cela irait à l’infini, si je voulais
dire tous les inconvénients qui arrivent aux nouveaux venus en ce pays comme moi,
etc., etc.
Mentionnons parmi les bibliographes et littérateurs contemporains

qui se sont occupés du Dauphiné: Ollivier (Jules): De l’Origine et de la
Formation des dialectes vulgaires du Dauphiné (Valence, Borel); 1838,
l’abbé Bourdillon: Des Productions diverses en patois du Dauphiné et
des Recherches sur les divers patois de cette province et sur leurs
différentes origines. Ce dernier ouvrage traite de l’origine des patois,
de leurs rapports avec la langue littéraire, de leur valeur respective et
de l’intérêt qui s’attache à leur conservation. Pierquin de Gembloux est
l’auteur de l’Histoire des patois et d’une étude intitulée: Des Traces
laissées par le Phénicien, le Grec et l’Arabe dans les dialectes
vulgaires du Dauphiné. On peut ajouter à cette liste déjà longue A.
Boissier, Clairefond, Lafosse, l’abbé Moutier, Rolland, de Ladoucette,
Allemand, Lesbros, etc., etc.
La Guyenne et la Gascogne comprenaient: la première, le
Périgord, le Quercy, l’Agenais, le Rouergue et une partie du Bordelais
et du Bazadais; la seconde, les Landes, l’Armagnac, le pays Basque,
le Bigorre, Comminges et Couserons. De la comparaison des idiomes
de ces divers pays, on peut conclure, d’une façon générale, qu’ils se
rapprochent de l’ancienne langue romane du XIIe et du XIIIe siècle. On y
retrouve l’harmonie, la correction et une certaine grâce, dont les
œuvres des Troubadours de cette époque portent l’empreinte. Il faut
en excepter le Basque, que les uns prétendent descendre du
Carthaginois, les autres des anciens Cantabres. Le dialecte de
Montauban, quoiqu’il indique, par certaines terminaisons de mots, une
parenté, très éloignée d’ailleurs, avec le Basque, trahit déjà par son
harmonie l’influence du Midi.
Nîmes: la Maison carrée.
Le moyen âge a été, pour la Guyenne et la Gascogne, l’époque la

plus riche en productions poétiques. Parmi les nombreux Troubadours
auxquels elles sont dues, nous citerons les plus illustres: Bertrand de
Born, vicomte de Hauteford, en Périgord; Geoffroy Rudel; Arnaud de
Marveil; Guillaume de Durfort; Heudes de Prades, chanoine de
Maguelone, dont le nom rappelle le souvenir de poésies plus que
galantes; Elyas de Barjols, favori d’Alphonse II; Elyas Cairels, qui
abandonna la lime et le burin pour se livrer, non sans succès, à la
poésie; Hugues Brunel, de Rodez, qui fit l’admiration des Cours des
comtes de Toulouse, de Rodez et d’Auvergne; Giraud de Calençon,
l’habile jongleur; Folquet de Lunel, qui terminait son roman sur la vie
mondaine par cette phrase: «L’an 1284 a été fait ce roman, à Lunel,
par moi Folquet, âgé de quarante ans, et qui, depuis quarante ans,
offense Dieu»; Guillaume de Latour, qui devint fou par amour;
Bertrand de Paris, surnommé Cercamons, parce qu’il errait
constamment; Arnaud Daniel, etc.
Vers la fin du XVIIIe siècle, Pierre Bernadau, avocat-citoyen du
département de la Gironde, traduisit en dialecte bordelais les Droits de
l’homme. Il envoya ensuite son travail au député Grégoire, qui l’avait
prié de lui donner des notes sur les mœurs, les coutumes, les usages
et la langue du Bordelais et des pays limitrophes. Personne n’ignore
que Grégoire, Barrère, de Fourcroy et d’Andrieux, ayant formé le
projet d’anéantir les idiomes provinciaux, se livrèrent à une enquête, et
s’adressèrent aux hommes les plus capables de leur fournir les
renseignements qu’ils désiraient avoir, avant de déposer leur projet de
loi. La traduction des Droits de l’homme, que nous empruntons à
Bernadau, est un fidèle miroir du langage du Bordelais sous la
Convention nationale.
Bordeaux, le 10 septembre,
L’an second de la Révolution de France
(1790).
LOUS DREYTS DE L’OME[97]
Lous deputats de tous lous Francés per lous representa et que formen
l’Assemblade natiounale, embisatgean que lous abeous que soun dans lou
rauïaumy et tous les malhurs puplics arribats benen de ce que tout lous petits
particuliers que lous riches et les gens en cargue an oblidatlut ou mesprisat lous
frans dreyts de l’ome, an resout de rapela lous dreyts naturels béritables, et que ne
poden pas fa perde aux omes. Aquere declaratioun a doun esta publidade per
aprene a tout lou mounde lur dreyts et lur débé, parlamo qu’aquets que gouberneu
lous afas de la France n’abusen pas de lur poudé, per que cade citoien posque
beyre quand déou se plagne s’ataquen sous dreyts, et per qu’aymen tous une
constitutioun feyte per l’abantage de tous, et qu’asségure la libertat a cadun.
Aess proco que lous dits deputats recounèchent et desclarent lous dreyts
suibants de l’ome et dau citoien, daban Dious et abeque sa sainte ayde.
Prumeyremen.—Lous omes néchen et demoren libres et egaux en dreyts et
g’nia que l’abantatge dau puplic que pot fa establi des distinctiouns entre lous
citoiens.
Ségoundemen.—Lous omes n’an fourmat de les societats que per millou
conserba lurs dreyts, que soun la libertat, la proprietat, la tranquillitat et lou poudé de
repoussa aquets que lur boudren causa doumatge den lur haunour, lur corps ou lur
bien.
Troizièmemen.—La natioun es la mestresse de toute autoritat et cargue de
l’etzersa qui ly plait. Toutes les compagnies, tous les particuliers qu’an cauque
poudé lou tenen de la natioun qu’es soule souberaine.
Quatrièmemen.—La libertat counsiste à poudé fa tout ce que ne fey pas de tort
à digun. Les bornes d’aquere libertat soun pausades per la loi et qui les passe dion
craigne qu’un aute n’en féde autan per ly fa tort.
Cinquièmemen.—Les lois ne diben défende que ce que trouble lou boun orde.
Tout ce que n’es pas defendut par la loi ne pot esta empacha, et digun ne pot esta
forsat de fa ce que ne coumande pas.
Cheyzièmemen.—La loi es l’espressioun de la bolontat générale. Tous lous
citoïens on dreyt de concourre à sa formation par els mêmes ou p’ra’quels que
noumen à lur place p’raux Assemblades. Faou se serbi de la même loi tant per puni
lous méchans que per protégen lous prâubes. Tous lous citoïens conme soun egaus
par elle, poden prétendre à toutes les cargues pupliques, siban lur capacitat, et sens
aute recoumandationn que lur mérite.
Sétièmemen.—Nat ome ne pot esta accusat, arrestat ni empreysounat que dans
lous cas espliquats per les lois, et séban la forme qu’an prescribut, que sollicite,
baille, etzécute on fey etzécuta dans ordres arbitraires diou esta punit sébérémen.
Mai tout citoïen mandat ou sésit au noun de la loi diou obéir de suite; deben
coupable en résistan.
Huytièmemen.—Ne diou esta pronounsat que de les punicious précisémen bien
nécessaires; et not ne pot esta puni q’en bertu d’une loi establide et connéchude
aban la faoute conmise et que sié aplicade coume coumben.
Naubièmemen.—Tout ome diou esta regardat inoucen jucqu’à ce que sie esta
déclarat coupable. Sé faou l’arresta deben préne garde de ne ly fa not maou ni
outrage. Aquels qui ly féden soufri cauqu’are diben esta sébéremen corrigeats.
Detzièmemen.—Not ne pot esta inquiétat à cause de ses opinions, même
concernan la religion, perbu que sous prépaus ne troublen pas l’ordre puplic establit
per la loi.
Oontzièmemen.—La communicatioun libre de les pensades es on pus bet dreyt
de l’ome. Tout citoïen pot doun parla, escrioure, imprima librémen, perbu que
respounde dous suites que pouyré angé aquere libertat den lous cas déterminats
per les lois.
Doutzièmemen.—Per fa obserba lous dreyts de l’ome et dau citoïen, faou daus
officiers puplics. Que sien presté, jutge sourdat, aco s’apere force puplique. Aquere
force es establide per l’abantage de tous et noun pas per l’intret particulier d’aquels
à qui l’an confiade.
Treitzièmemen.—Per fourni à l’entretien de la force puplique, faou mete de les
impositions su tous, et cadun n’en diou pagna sa portionn siban ses facultats.
Quatortzièmemen.—Lous citoïens on lou dreyt de berifia els mêmes ou pran
moyen de lus députats qu’an noumat la nécessitat de les impositiouns et les acourda
libremen prou besouin de l’Estat de marqua combien, coumen et duran qu’au tems
libéran d’aqueres impositiouns et de beyre même coumen lou prébengut en es
emplégat.
Quintzièmemen.—La sociétat a lou dreyt de demanda conte à tous lous agens
puplics de tout so qu’an feit dens lur place.
Setzièmemen.—Gnia pas de boune constitutioun dens toute societat ou lous
dreyts de l’ome ne soun pas connéchuts et asségurats et ou la séparation de cade
pouboir n’es pas ben establide.
Darney article.—Les proprietats soun une causa sacrada et oun digun ne pot
touca sen bol. Nat ne pot en esta despouillat, exceptat quand lou bien puplic l’etsige.
Alors fau que pareche cla qu’au besonier per l’abantatge commun de ce que aporten
à cauque citoïen, et ly diben bailla de suite la balour de ce que cede.
Cet exemple assez long nous dispense d’en citer d’autres. Les
emprunts répétés faits au Français y ont tellement dénaturé le dialecte
bordelais qu’on peut se demander si le traducteur le connaissait bien,
ou si, à l’époque de la traduction, les habitants de Bordeaux ne
subissaient pas, plus que les ruraux, l’influence prépondérante de la
langue Française. Il est certain que, dans les campagnes, et en ville
même, les gens du peuple employaient et emploient encore
aujourd’hui des expressions absolument différentes de celles dont
M. Bernadau s’est servi pour traduire les Droits de l’homme et du
citoyen.
La province de Languedoc fut celle où la croisade dirigée contre
les Albigeois détermina le plus rapidement la décadence de la langue
Romane. Cependant, les Troubadours qui purent échapper aux
massacres de Simon de Montfort ne se déclarèrent pas vaincus. Plus
d’un royal asile leur resta ouvert. Les uns se réfugièrent en Provence,
où nous les avons vus, sous Bérenger, puis sous le règne du bon roi
René, partager avec les poètes du pays les faveurs de ces princes
lettrés. D’autres franchirent les Pyrénées ou traversèrent la mer pour
être amicalement accueillis par les rois d’Aragon, de Castille et de
Sicile. Cependant, les œuvres qu’ils produisirent à partir de cette
époque se ressentirent du chagrin de l’exil, que leurs bienfaiteurs
pouvaient adoucir dans ses conséquences matérielles, mais non faire
oublier. Les brutales circonstances qui l’avaient accompagné le
rendaient encore plus cruel, et mirent une empreinte de langueur sur
leur esprit, naguère encore si vif et si primesautier. Cet amour du pays
natal est éloquemment exprimé par ces paroles de Pierre Vidal:
Je trouve délicieux l’air qui vient de la Provence; j’aime tant ce pays! Lorsque j’en
entends parler, je me sens tout joyeux, et, pour un mot qu’on m’en dit, mon cœur en
voudrait cent. Mon amour est tout entier pour cette aimable nation, car c’est à elle à
qui je dois ce que j’ai d’esprit, de savoir, de bonheur et de talent[98].
Le centre de la vie méridionale ayant été déplacé, le Roman-
Provençal perdit sa nationalité. Les populations, qu’un lien commun
n’unissait plus, parlèrent un langage d’où peu à peu les règles
disparurent pour faire place à des solécismes et à des locutions
informes qui marquèrent sa décadence profonde, surtout dans les
pays pauvres ou montagneux. Dans les villes, au contraire, le souvenir
de la langue nationale se réveilla à un moment donné, et fut le point
de départ d’un travail de recomposition. Le vieil idiome, sous
l’impulsion qui lui fut donnée, reparut, modifié, enrichi de tournures et
d’expressions nouvelles, sans toutefois perdre le caractère qui lui était
propre. Le Toulousain, qui, depuis, fut cultivé avec succès, est un des
patois les plus harmonieux, c’est un de ceux auxquels se rattachent le
plus de souvenirs. Dans ses mémoires sur l’histoire naturelle du
Languedoc, Astruc prétend qu’à la faculté de Montpellier la langue
d’oc était exclusivement employée pour enseigner les préceptes de la
médecine et de la botanique, puisés dans les auteurs arabes, les
seuls familiers au moyen âge dans cette partie de la France
méridionale.
Voici un spécimen du patois de Toulouse au XIVe siècle:
CANÇON DITTA LA BERTTA
Fatta sur la guerra d’Espagnia, fatta pel généroso

Guesclin, assistat des nobles mundis de Tholosa
A Dona Clamença.
Dona Clamença, se bous plats,
Jou bous diré pla las bertats
De la guérra que s’es passada
Entre pey lou rey de Léon,
Henric soun fray, rey d’Aragon,
E d’ab Guesclin soun camarada,
E lous moundis qu’éren anats,
E les que nou tournen jamas
S’es qu’yen demande recompença,
Perço que non meriti pas
D’abe de flous de bostos mas:
Suffis d’abe bost’ amistança.
L’an mil tres cens soixante-cinq,
Dén boule déu rey Charles-Quint,
Passée en aquesta patria
Noble seignou, Bertran-Guesclin,
Baron de la Roquo-Clarin,
Menan amb’ et gentdarmaria.
L’honor, la fé, l’amor de déus,
Erou touts lous soulis motéus
Qu’ets portavau d’ana fa guerra
Contra lous cruels Sarrazis[99], etc., etc...
La pièce suivante, dont Goudouli est l’auteur, permettra de juger

des changements survenus dans le patois de Toulouse vers le XVIIe
siècle:
Hier, tant que le Caüs, le chot é la cabéco
Tratabou à l’escur de lours menus afas,
E que la tristo nèyt, per moustra sous lugras,
Del grand calel dél cél amagabo la méco,
—Un pastourel disie:—B’é fayt uno grand péco
De douna moun amour à qui nous la bol pas,
A la bélo Liris, de qui l’armo de glas
Bol rendre pouramen ma persuto buféco,
Mentre que soun troupél rodo le communal,
Yen soun ouna cent cops parla, li de moun mal;
Mès la cruélo cour à las autros pastouros,
Ah! soulél de mous éls, se jamay sur toun se
Yen podi fourrupa dous poutets à plaze,
Yen faré ta gintos, que duraros très houros!
Le patois de Montpellier a quelque affinité avec l’Italien, il s’en

rapproche assez par la prononciation de certains mots. Nous
trouvons, dans les réponses adressées à l’abbé Grégoire lors de son
enquête sur les patois de France, un morceau de poésie, par Auguste
Rigaud de Montpellier, qui peut donner une idée de ce patois en 1791.
L’AMOUR POUNIT PER UNA ABEIA
Lou pichot diou qu’és tout puissan,

Vechen una rosa vermeia
Voou la culi, mais una abeia
Lou fissa redé, et, tout plouran,
S’encouris vité vers sa mera.
Et yé dis, d’un air bén mouquêt:
«Vésés, mama, qu’es gros moun det
Una abeia, dins moun partera,
Ven, peccaïre! de mé pouni,
Soutapa, qué me fai souffri!»
Vénus lou pren sur sa faoudéta,
Souris, l’acala emb’un poutou,
Et dis: «Moun fil, suna bestiéta,
Pus marrida qu’un parpaïou,
Te faï tant coïré la maneta,
Jugea un paouquét quinté es l’estat
D’un cor que toui traits an blassat!»
Dans sa notice sur Montpellier, M. Charles de Belleval donne la

traduction patoise de la cantate du Nid d’amour, de Métastase, dont
nous reproduisons ici quelques vers:
Counouyssès la béla Liseta?
Et bé, fugissé-là toujours:
Lou cur d’aquéla bergèyréta
Es ûna nizâda d’amours.
Aqui s’én véy de touta ména;
Un tout éscas sort dâou cruvél,
Un âoutre né comménça à péna,
Dé sâoupre bécâ dés per el... etc.
Le Languedoc produisit un grand nombre de Troubadours, nous

nous contenterons de mentionner les plus remarquables:
Garins d’Apchier, gentilhomme d’une ancienne famille du
Gévaudan; on le disait aussi bon poète que seigneur galant et
prodigue. On lui prête l’invention du descord. Pons de Capdeuil,
célèbre par ses chants d’amour et ses sirventes militaires, faisait de sa
demeure le rendez-vous de toute la noblesse de la contrée. Là se
donnèrent des fêtes magnifiques jusqu’au jour où, la dame de ses
pensées étant venue à mourir, Pons de Capdeuil prit un cilice,
échangea ses riches vêtements contre une cuirasse, et courut se faire
tuer dans une expédition lointaine. Azalaïs de Procairagues
appartenait à l’une des familles les plus distinguées de Montpellier; il
reste d’elle plusieurs chansons qu’elle composa en faveur de Gui
Guérujat, fils de Guillaume VI, qu’elle aimait tendrement. Pierre
Raymond, de Toulouse, dut à son mérite autant qu’à son esprit le bon
accueil qu’il reçut dans les cours du roi d’Aragon, de Raymond V et de
Guillaume VIII de Montpellier. On peut encore citer Guillaume de
Balaun, Pierre de Barjac, Giraud Leroux, Perdigon, Nat de Mons,
Pierre Vidal, Figueira, Arnaud de Carcassés, Clara d’Anduse.
La bibliographie complète des ouvrages relatifs à la langue d’oc
parlée dans l’Hérault est trop importante pour figurer ici. Nous en
extrayons ce qu’elle présente de plus remarquable: Thomas:
Vocabulaire des mots romans-languedociens dérivant directement du
Grec, 1841.—Floret: Discours sur la «lengo Romano».—Laurès:
Poésies Languedociennes.—Roque-Ferrier: Poème en langage
Bessau (Hérault).—Barthès: Glossaire botanique languedocien.—
Tandon: Fables, contes en vers (patois de Montpellier).—De
Tourtoulon: Note sur le sous-dialecte de Montpellier.—Mushack: Étude
sur le patois de Montpellier.
A ces notes, nous ajouterons les suivantes pour le Gard: Abbé
Séguier: Explication en français de la langue patoise des Cévennes.—
Boissier de Sauvages: Dictionnaire languedocien-français; cet
ouvrage a eu plusieurs éditions.—De La Fare-Alais: Las Castagnados,
poésies languedociennes, avec notes et glossaire.—Aillaud,
Remarques sur la prononciation nîmoise.—D’Hombres: Alais, ses
origines, sa langue, etc.—Glaize: Écrivains contemporains en langue
d’oc.—Fresquet: le Provençal de Nîmes et le Languedocien de
Colognac comparés.—Bigot, de Nîmes: Fables.—Reboul: Poésies
diverses.
Dans la Provence proprement dite, le Roman fut cultivé par les
Troubadours et parvint à une perfection relative avant même que le
Français eût des formes régulières. La Cour de Provence était une
des plus brillantes de l’Europe et la langue dite provençale était
cultivée chez les autres peuples de préférence à toutes les autres.
Mais, après le roi René, la couronne de Provence ayant été réunie à
celle de France, la langue nationale perdit peu à peu de son
importance, elle cessa d’être officielle, s’altéra de plus en plus, et ne
conserva plus son caractère propre que dans la population rurale. Les
Troubadours de la Provence furent très nombreux; quelques-uns
acquirent une célébrité dont les derniers reflets sont arrivés jusqu’à
nous. Tel fut Folquet de Marseille, évêque de Toulouse. S’étant, dans
sa jeunesse, épris de la belle Azalaïs de Roquemartine, il lui dédia des
vers enflammés. Mais sa nature fougueuse lui ayant fait embrasser la
cause de la croisade contre les Albigeois, il reparut en prêtre
fanatique, prêchant les persécutions contre les malheureux, donnant
ainsi à son rôle de prêtre un caractère odieux dont l’histoire devait
faire justice. Bertrand d’Alamanon, gentilhomme d’Aix, se fit remarquer
par ses satires contre Charles d’Anjou, comte de Provence et roi de
Naples, qui traita son pays en conquérant brutal, le ruina par ses
impôts et le dépeupla par ses guerres. D’une nature droite, plein de
courage, habile diplomate, Bertrand d’Alamanon n’épargna ni le pape
Boniface VIII, ni Henri VII, ni l’archevêque d’Arles. Blacas et
Blacasset, ses fils, furent tous deux des gentilshommes illustres par la
noblesse de leur maison et la supériorité de leur esprit; Sordel, dans
une complainte célèbre sur la mort du premier, vante son courage et
les qualités qui firent de lui un héros. Boniface III de Castellane fut un
des plus violents satiriques du XIIIe siècle; Nostradamus cite plusieurs
de ses chansons qui ont toutes pour refrain: Bocca, qu’as dich?
(Bouche, qu’as-tu dit?), comme une sorte de regret de la hardiesse de
ses paroles. Citons encore: Granet; Raymond Bérenger V, comte de
Provence; Richard de Noves, qui écrivit en vers l’histoire de son
temps; Bertrand Carbonel; Poulet, de Marseille, poète grave et
correct; Jean Estève, dont les pastourelles gracieuses ne manquent
pas de saveur; Natibors ou Mme Tiberge de Séranon, la grâce faite
femme, qui versifiait agréablement; Raymond de Solas; Jean Riquier,
dont un grand nombre de poésies charmantes sont arrivées jusqu’à
nous. Arnaud de Cotignac et Bertrand de Puget peuvent clore cette
liste déjà longue. Plus tard, nous trouvons Louis Belaud de La
Belaudière; Gros, de Marseille; Puget, auteur d’un Dictionnaire
provençal; Papon, Considérations sur l’histoire de la langue
Provençale; Carry, de Marseille, Dictionnaire étymologique du
Provençal, 1699; et, enfin, Achard[100], dont la grammaire et le
dictionnaire fixèrent, pour la première fois, les règles du Provençal
encore en usage de nos jours. On ne peut nier que le Provençal,
comme les autres dialectes de la langue d’Oc, n’ait subi, après la
réunion de la Provence à la France, un temps d’arrêt qui nuisit
considérablement à son développement. Jusque-là langue nationale, il
cessa d’être officiel. Cependant sa déchéance fut plus apparente que
réelle. Renié par la cour, il ne fut plus, il est vrai, l’objet des mêmes
encouragements, et ne put parvenir au degré de perfection que devait
atteindre le Français. Mais il ne cessa jamais d’être la langue parlée
par le peuple dans toute la Provence proprement dite; observation qui
s’applique d’ailleurs aux dialectes des autres provinces du Midi de la
France; ils restèrent également populaires. Les productions poétiques
et littéraires devaient nécessairement être moins nombreuses, elles le
furent en effet, mais sans jamais cesser complètement. Les œuvres
de L. Belaud de La Belaudière, de Millet de la Drôme, de Gros de
Marseille, de l’abbé Caldagnès, de Pasturel, de Rigaud de Montpellier,
de Goudouli, de Boissier de Sauvages, de Tandon, de Daubian et de
bien d’autres prouvent assez que le Midi avait conservé sa langue,
dont la vitalité avait su résister à tant d’événements contraires.
L’abbé Grégoire ne l’ignorait pas; son célèbre rapport à la
Convention ne fut qu’un violent réquisitoire contre ce qu’il appelait la
Fédération des idiomes. Les efforts de la Révolution, pas plus que les
anciennes ordonnances royales sur la proscription du Provençal, ne
réussirent à anéantir une langue parlée depuis huit cents ans; enfin, le
décret du 8 pluviôse an II, qui établissait un instituteur français dans
chaque commune des départements frontières, eut ce résultat
heureux que le Midi apprit à parler et à écrire le Français, tout en
conservant l’idiome régional dans toutes les circonstances où le
Français n’était pas absolument nécessaire. Il devint bilingue, et,
depuis cette époque, comme deux sœurs unies par les mêmes liens,
la langue Française et la langue Provençale s’enrichirent
mutuellement en se prêtant des mots, des formes et des tournures de
phrases consacrés par l’usage et ratifiés par le temps.
NOTES:
[88] Extrait des registres Potentia, bibliothèque Mejanes.
[89] Lettre de la fin du XVe siècle, écrite par un fils à son père.
L’original appartenait à la collection de l’historien provençal Bouche.
[90] Deux éditions des poésies de Gros ont été publiées à Marseille,
l’une en 1734, l’autre en 1763. Le Bouquet provençal en a inséré
quelques-unes en 1823.
[91] Mémoires de l’Académie celtique, t. III, p. 371.
[92] Mémoires de l’Académie celtique, t. II, p. 371.
[93] Louis XIV.]
[94] La plus mauvaise cheville de la charrette est celle qui fait le
plus de bruit.
[95] Ce n’est pas avec un tambour qu’on rappelle un cheval
échappé.
[96] Le chef d’orchestre.
[97] Traduction.
LES DROITS DE L’HOMME
Les députés de tous les Français, pour les représenter, et qui
forment l’Assemblée nationale, envisageant que les abus qui sont dans
le royaume et tous les malheurs publics arrivés viennent de ce que
tous les petits particuliers, que les riches et les gens en charge ont
oublié ou méprisé les francs droits de l’homme, ont résolu de rappeler
les droits naturels véritables, et qu’on ne peut pas faire perdre aux
hommes. Cette déclaration a donc été publiée pour apprendre à tout le
monde ses droits et ses devoirs, afin que ceux qui gouvernent les
affaires de la France n’abusent pas de leur pouvoir, afin que chaque
citoyen puisse voir quand il doit se plaindre, si on attaque ses droits, et
afin que nous aimions tous une constitution faite pour l’avantage de
tous, et qui assure la liberté à chacun.
C’est pour cela que lesdits députés reconnaissent et déclarent les
droits suivants de l’homme et du citoyen, devant Dieu et avec sa sainte
aide.
Premièrement.—Les hommes naissent et demeurent libres et
égaux en droits, et il n’y a que l’avantage du public qui puisse faire
établir des distinctions entre les citoyens.
Secondement.—Les hommes n’ont formé des sociétés que pour
mieux conserver leurs droits, qui sont la liberté, la propriété, la
tranquillité et le pouvoir de repousser ceux qui leur voudraient causer
dommage dans leur honneur, leur corps ou leur bien.
Troisièmement.—La nation est la maîtresse de toute autorité, et
elle charge de l’exercer qui lui plaît. Toutes les compagnies, tous les
particuliers qui ont quelque pouvoir le tiennent de la nation, qui est
seule souveraine.
Quatrièmement.—La liberté consiste à pouvoir faire tout ce qui ne
fait de tort à personne. Les bornes de cette liberté sont posées par la
loi, et qui les passe doit craindre qu’un autre n’en fasse autant pour lui
faire tort.
Cinquièmement.—Les lois ne doivent défendre que ce qui trouble
le bon ordre. Tout ce qui n’est pas défendu par la loi ne peut être
empêché, et personne ne peut être forcé de faire ce qu’elle ne
commande pas.
Sixièmement.—La loi est l’expression de la volonté générale. Tous
les citoyens ont le droit de concourir à sa formation par eux-mêmes ou
par ceux qu’ils nomment à leur place par les Assemblées.
Il faut se servir de la même loi, tant pour punir les méchants que
pour protéger les pauvres. Tous les citoyens, comme ils sont égaux par
elle, peuvent prétendre à toutes les charges publiques, suivant leur
capacité, et sans autre recommandation que leur mérite.
Septièmement.—Nul homme ne peut être accusé, arrêté ni
emprisonné que dans les cas expliqués par les lois et suivant la forme
qu’elles ont prescrite. Qui sollicite, donne, exécute ou fait exécuter des
ordres arbitraires doit être puni sévèrement. Mais tout citoyen appelé
ou saisi au nom de la loi doit obéir de suite; il devient coupable en
résistant.
Huitièmement.—Il ne doit être prononcé que des punitions
précisément bien nécessaires; et nul ne peut être puni qu’en vertu
d’une loi établie et connue avant la faute commise, et qui soit appliquée
comme il convient.
Neuvièmement.—Tout homme doit être regardé comme innocent
jusqu’à ce qu’il soit (sic) déclaré coupable. S’il faut l’arrêter, on doit
prendre garde de ne lui faire aucun mal ni outrage. Ceux qui lui font
souffrir quelque chose doivent être sévèrement corrigés.
Dixièmement.—Nul ne peut être inquiété à cause de ses opinions,
même concernant la religion, pourvu que ses propos ne troublent pas
l’ordre public établi par la loi.
Onzièmement.—La communication libre des pensées est le plus
beau droit de l’homme. Tout citoyen peut donc parler, écrire, imprimer
librement, pourvu qu’il réponde des suites que pourrait avoir cette
liberté dans les cas déterminés par les lois.
Douzièmement.—Pour faire observer les droits de l’homme et du
citoyen, il faut des officiers publics. Qu’ils soient prêtres, juges, soldats,
cela s’appelle force publique.
Cette force est établie pour l’avantage de tous, et non pas pour
l’intérêt particulier de ceux à qui on l’a confiée.
Treizièmement.—Pour fournir à l’entretien de la force publique, il
faut mettre des impositions sur tous, et chacun en doit payer sa portion
suivant ses facultés.
Quatorzièmement.—Les citoyens ont le droit de vérifier eux-
mêmes, ou par le moyen des députés qu’ils ont nommés, la nécessité
des impositions, et de les accorder librement, suivant le besoin de
l’État; de marquer combien, comment et durant quel temps on livrera
ces impositions, et de voir même comment le produit en est employé.
Quinzièmement.—La société a le droit de demander compte à tous
les agents publics de tout ce qu’ils ont fait dans leur place.
Seizièmement.—Il n’y a pas de bonne constitution dans toute
société où les droits de l’homme ne sont pas connus et assurés, et où
la séparation de chaque pouvoir n’est pas bien établie.
Dernier article.—Les propriétés sont une chose sacrée, et à
laquelle personne ne peut toucher sans vol. Nul ne peut en être
dépouillé, excepté quand le bien public l’exige. Alors il faut qu’il
paraisse clair qu’on a besoin pour l’avantage commun de ce qui
appartient à quelque citoyen, et on lui doit donner de suite la valeur de
ce qu’il cède.
[98] Pierre Vidal, troubadour de Toulouse au XIIe siècle.
[99] Jean de Casavateri fait mention de cette expédition dans son
ouvrage imprimé à Toulouse, en 1544.
[100] Achard, bibliothécaire national à Marseille, né dans cette ville
en 1751, mort en 1809.
XII
GRAMMAIRE PROVENÇALE
Grammaire provençale (d’après Achard) (1794).—Abrégé de grammaire provençale

(d’après Dom Xavier de Fourvières).—Différences linguistiques et orthographiques
entre le Provençal parlé et écrit avant la Révolution et le Provençal de nos jours,
selon l’école félibréenne.—Conclusion.
PETITE GRAMMAIRE PROVENÇALE
Par C.-F. ACHARD[101]

BIBLIOTHÉCAIRE DE LA VILLE DE MARSEILLE
(Avril 1794)
PREMIÈRE PARTIE
CHAPITRE PREMIER
DES LETTRES ET DE LA PRONONCIATION
Les Provençaux emploient les mêmes lettres que les Latins et les
Français. Ils font sonner toutes les lettres et n’aspirent pas l’h. Aussi
voyons-nous que la plupart des écrivains provençaux ont retranché
dans leurs ouvrages les lettres finales qui ne se prononcent que
lorsque le mot est suivi d’une voyelle.
DES VOYELLES
A. Se prononce comme en français.

E. Se prononce en provençal de deux manières: lorsqu’il se trouve
à la fin des mots, il se prononce toujours comme l’é fermé du français;
il est cependant d’usage de ne pas l’accentuer; l’è ouvert est toujours
prononcé fortement, comme celui que nous indiquons par un accent
circonflexe. Exemple: addusés, venguet, linge; prononcez: adûze,
vêngué, lingé. Il faut même observer que l’e suivi d’une consonne se
prononce toujours de même que s’il était seul. Ainsi, dans le mot
venguet, que j’ai cité, il ne faut pas dire vangué, mais vé-ngué, comme
nous prononçons ennemi et non pas annemi.
I. Se prononce comme en français, et il se prononce comme en
latin dans les monosyllabes im, in et dans les mots qui en sont
composés.
O. Cette voyelle dans les mots a la même prononciation qu’en
français; mais, à la fin des mots, elle remplace l’e des Français. Ainsi il
est reçu d’écrire verguo, qui se prononce comme vergue en français.
U. La voyelle u n’a rien de particulier, si ce n’est qu’il faut
prononcer u dans le mot un comme nous le prononçons dans le mot
une et ne pas le changer en la diphtongue eun, comme le font les
Français.
DES DIPHTONGUES, ETC...
Les diphtongues sont l’union de deux voyelles qui ne forment

qu’une syllabe. Voici les principales:
Ai, que l’on prononce ahi,
Au, — — ahou,
Ei, — — ehi,
Ia, — — iha, mais par un
simple son.
Ié, — — ihé,
Io, — — iho,
Oi, — — ohi,
Les diphtongues et les quadriphthongues sont aussi usitées en

provençal:
Aou, ou au, prononcez: ahou,
Uou, — uhou, — huhou, d’un
seul
Ueil, — uheil, — hui, son

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1) An externality occurs when ________.

2) Which of the following is the best definition of an externality?

6) Which of the following is NOT true regarding externalities?

7) Traffic congestion is an example of a ________.

9) When the production of a good generates negative externalities, ________.

12) If negative externalities are present in a market, ________.

13) If the production of a good involves negative externalities, ________.

22) Which of the following is likely to generate a negative externality?

38) A positive externality ________.

42) The presence of a positive externality in a market leads to a(n) ________.

43) If the production of a good involves positive externalities, ________.

71) Which of the following is necessary for markets to operate efficiently?

9.2 Private Solutions to Externalities

2) Which of the following occurs when an externality is internalized?

Profit with Filtering Profit without Filtering

24) Which of the following is an implication of the Coase Theorem?

25) Private solutions to externalities are most effective if ________.

27) What does the Coase Theorem predict?

1) Government invention is required to solve externality problems if ________.

2) Refer to the scenario above. The council's action is an example of ________.

10) A Pigouvian tax is a tax designed to ________.

12) When a Pigouvian tax is imposed, ________.

20) A Pigouvian subsidy leads to a socially efficient outcome by ________.

22) Which of the following is true?

27) Efficient government intervention requires that ________.

30) A Pigouvian tax is also called a(n) ________.

Corn Demand: QD = 70 - 5p,

Inverse Demand: p = 14 - 0.2Q

MSC = MPC + MEC = 0.1Q + 0.5 + 1.5

9.4 Public Goods

1) Private goods are ________.

2) If a good is excludable, ________.

3) A good is non-rival in consumption if ________.

5) Which of the following is an example of an ordinary private good?

6) Which of the following is an example of a public good?

7) ________ are highly excludable but non-rival in consumption.

8) ________ are non-excludable but rival in consumption.

10) ________ are non-rival in consumption.

11) An online newspaper is an example of a(n) ________.

12) ________ is an example of a common pool resource good.

13) Which of the following is an example of a club good?

15) Rides in a public park are ________ in consumption.

16) The view of a spectacular sunset on a beach is a(n) ________.

19) Which of the following is an example of a public good?

21) A room heater is a ________.

22) A street light is a ________.

24) A congested street is ________ in consumption.

26) Which of the following correctly completes the following table?

High Excludability Low Excludability

A) x = Public Good; y = Private Good; z = Common Pool Resource; w = Club Good

29) The free-rider problem may arise in the case of ________.

30) Which of the following is likely to have a free-rider problem?

Homeowner 1's Homeowner 2's Homeowner 3's

41) Why do people refuse to pay for public goods?