chapter 19

Question 1

What is a fungible product?

Answer 1

It is the same product all the way around. (Russians oil is the same as Iraqi oil.)

Question 2

What is a rival good?

Answer 2

If you consume it, no one else can!

Question 3

What is an excludable good?

Answer 3

You have to pay for it in order to consume it.

Question 4

Food, clothes, and fuel are all examples of ?

Answer 4

Rival goods.

Question 5

What are some examples of Rival goods that are excludable?

Answer 5

Private goods: cliff bar bar, house, contact lens,

Question 6

What are non-rival and excludable goods?

Answer 6

Club goods: Costco, gym, cable tv, Wi-fi, Digital music

Question 7

What are some examples of Rival goods that are non excludable?

Answer 7

Common resources: fish in the ocean, national parks (camp sight), public roads.

Question 8

What are some non-rival and non excludable goods?

Answer 8

Public goods: common showers, asteroid defense

Question 9

Private good?

Answer 9

Are excludable and rival.

Question 10

Public goods?

Answer 10

Are nonexcludable and nonrival

Question 11

What is a free rider?

Answer 11

Someone who enjoys the benefits of a public good without paying a share of the costs.

Question 12

What is a forced rider?

Answer 12

Someone who pays a share of the costs of a public good but does not enjoy the benefits.

Question 13

What situation yields a forced rider?

Answer 13

taxation.

Question 14

What is a non-rival private good?

Answer 14

Goods that are excludable but non-rival (club goods)

Question 15

What are common resources?

Answer 15

Goods that are non-excludable but rival.

Question 16

What is the result of nonexcludability and rivalry?

Answer 16

• overexploitation and undermaintained. - Tragedy of the commons.

Question 17

• Tragedy of the commons:?

Answer 17

the tendency of any resource that is unowned and hence nonexcludable to be overused and undermaintained.