Cht. 11- Public and Private Goods Flashcards
1
Q
Rivalry in Consumption
A
The property of a good whereby one person’s use diminishes other people’s use.
2
Q
Private goods
A
•Excludable •Rival in consumption
3
Q
Public goods
A
•Not excludable •Not rival in consumption
4
Q
Common Resources
A
•Not excludable •Rival in consumption
5
Q
Natural Monopoly
A
•Excludable •Not rival in consumption
6
Q
Free rider
A
A person who receives benefit of a good but avoids paying for it.
7
Q
Cost-benefit analysis
A
A study that compares costs and benefits to society in providing a public good.
8
Q
Tragedy of the Commons
A
A parable that illustrates why common resources get used more than is desirable from the standpoint of society as a whole.
9
Q
Excludability
A
The property of a good whereby a person can be prevented from using it.
