chapter 13 vocab Flashcards
a good that is excludable and rival
private good
a good whose consumption by others can be prevented by its owner(s)
excludable good
a goos that can only be consumed by only one person at a time
rival good
a good whose benefits are freely available to anyone (nonexcludable), and whose use by one person does not diminish its usefulness to others (nonrival)
public good
a good whose benefits are freely available to all users
nonexcludable good
a good that can be consumed by more than one person at a time. The marginal cost of providing a nonrival good to an additional person is zero
nontrivial good
a resource that is nonexcludable and rival
common property resource
a good that is excludable but nonrival
artificially scarce good
the point at which the demand for nonrival good results in a diminished benefit to each user, and thus it becomes rival
congestion
the practice of charging different customers different prices for the same good or service
price discrimination
tradable rights to access or harvest a common property resource, such as the right to harvest a particular quantity of fish
individual transferable quota (ITQ)
a situation in which an unregulated common property resource is seriously degraded due to overuse
tragedy of the commons
those who obtain the benefits of a public good without paying anything for it
free riders
long-term changes in global climate, including warmer temperatures, changing precipitation patterns, more extreme weather events, and rising sea levels
climate change
gases such as carbon dioxide and methane whose atmospheric concentrations influence global climate by trapping solar radiation
greenhouse gases
