Chapter 11 - Public Goods Flashcards
1
Q
Excludable
A
A good is excludable if a person can be prevented from using it
2
Q
Rival in consumption
A
A good is a rival in consumption if one person’s use of it diminishes others use
3
Q
Private goods
A
Excludable, rival in consumption
4
Q
Public goods
A
Not excludable, not rival
5
Q
Common resources
A
Rival but not excludable
6
Q
Club goods
A
Excludable but not rival
7
Q
Free rider
A
A person who receives the benefit of a good but avoids paying for it
8
Q
Cost benefit analysis
A
A study that compares the costs and benefits of providing a public good
