Ch 11(public goods and common resources)

Question 1

excludable good

Answer 1

a good that a person can be prevented from using

Question 2

rival goods

Answer 2

on person’s use diminishes other people’s use

Question 3

private goods

Answer 3

goods that are both excludable and rival in consumption

-ex: icecream cone

Question 4

common resources

Answer 4

goods that are rival in consumption but not excludable

-ex: fish in the ocean

Question 5

club goods

Answer 5

goods that are excludable but not rival in consumption

Question 6

public goods

Answer 6

are neither excludable nor rival in consumption

-ex: national guard, tornado alarm

Question 7

free rider

Answer 7

a person who receives the benefit of a good but avoids paying for it

Question 8

cost-benefit analysis

Answer 8

a study that compares the costs and benefits to society of providing a public good

Question 9

tragedy of the commons

Answer 9

a parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole