Chapter 11 - Public Goods and Common Resources Flashcards
Excludibility
Property of a good whereby a person can be prevented from using it
Rivalry in Consumption
Property of a good whereby one persons use diminishes other peoples use
Private Goods
Both excludable and rival in consumption
Public Goods
Neither excludable nor rival in consumption
Common Resources
Rival in consumption but not excludable
Club Goods
Excludable but not rival in consumption
Free-Rider
Person who receives the benefit of a good but avoids paying for it
Cost-Benefit Analysis
Study that compares the costs and benefits to society of providing a public good
The Tragedy of Commons
Parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole
Some Important Common Resources
Clean air and water; Congested Roads; Fish, Whales, and Other Wildlife
Some Important Public Goods
Basic Research; National Defense; Fighting Poverty
Which categories of goods are excludable?
Private goods and Club goods
What categories of goods are rival in consumption
Private goods and Common Resources
What goods are underprovided in the absence of government?
Public Goods
Overused in the absence of government
Common Resources
