In much of the United States and Canada, logging takes place in both privately o

ID: 1123637 • Letter: I

Question

In much of the United States and Canada, logging takes place in both privately owned and government-owned forests.

a. Privately owned forests are:

private, nonrival, and excludable.

private, rival, and nonexcludable.

public, rival, and excludable.

private, rival, and excludable.

b. Suppose that anyone is legally allowed to enter a government-owned forest and start logging. These forests are:

private resources.

rival and private.

public free riders.

common resources.

c. The rate of logging in a government-owned forest would be (Click to select) slower than faster than equal to the efficient level

equal, slower than or faster then

1> private, rival, and excludable.

Reason

Since it is a private forest, the owner can make sure that no one steals logs from his property making it excludable and thus it is a private good.

2> common resources.

Common resources are rivalrous but non-excludable, here the forests are examples of such.

3> Faster than

Reason

In common resources, if no regulation is done, people will cut tree to make money as there is a very low cost in cutting trees.

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