Chapter 19

Question 1

What is the non-diminishability property

Answer 1

It says that any one persons consumption of a good has no effect on the amount of it available for others e.g Air ig idk

Question 2

What does Non-excludability mean

Answer 2

It means that it is either impossible or prohibitively costly to exclude people from consuming the good

Question 3

What is a Private good

Answer 3

A good that has a high degree of diminish ability and excludability

Question 4

What’s the opposite of a private good called

Answer 4

Pure public goods an example would be a lighthouse
And the marginal cost OF ADDITIONAL CONSUMPTION of a public good is EXACTLY 0

Question 5

Collective goods

Answer 5

A good that is excludable and has a high degree only of non-diminish ability
For example pay per view tv
Anyone can watch champions league at the pub but u gotta buy the license

Question 6

Impure public goods

Answer 6

A good that has some non diminish ability and non excludability

Question 7

What is free riding

Answer 7

Choosing to not donate to a cause but still benefit from the donations of others