CHAPTER 18 PUBLIC GOODS

Question 1

Free rider

Answer 1

A person or organization which receives benefits that others have paid for without making any contributions

Question 2

Non-excludability

Answer 2

Once provided, it is impossible to prevent any economic agent not to consume the good

Question 3

Non-rejectability

Answer 3

Once provided, it is impossible for any economic agent not to consume the good.

Question 4

Non-rivalry, non-diminishability or non- exhaustability

Answer 4

Consumption by one economic agent does not reduce the amount available for consumption by others.

Question 5

Prtivate good

Answer 5

A good which posses the characteristics of rivalry (Once consumed, it cannot be consumed by anyone else) and excludability (it is possible to prevent someone else from consuming the good).

Question 6

Public good or pure public good

Answer 6

A good which posses the characteristics of non-rivalry(Or non-diminishability) and non-excludability (which includes the characteristic of non-rejectability.

Question 7

Quasi-public good or non-pure public good

Answer 7

A good which does not perfectly possess the characteristics of non-rivalry and non-exhaustibilityand yet which also is non perfectly rival or excludable.