Market Failure - Common Pool Resources

Question 1

Common Pool resources

Answer 1

A diverse group of natural resources that are non-excludable. Optimising for one self in the short term is not optimal for anyone long term

Question 2

Tragedy of Commons

Answer 2

Follows the principal: what is good for all of us is good for each of us

Question 3

Rivalrous goods

Answer 3

When the consumption by one consumer of a particular good or service reduces the quantity available for others

Question 4

Non rivalrous goods

Answer 4

The characteristics of some goods such that there consumption by one individual does not reduce the ability of another to consume

Question 5

Non excludable goods

Answer 5

A characteristic of a good or service where it is impossible to prevent a person or persons from using it

Question 6

Private goods

Answer 6

goods that are rivalrous and excludable

Question 7

Public goods

Answer 7

Goods that are non rivalrous and non excludable (flood barriers, public park, etc)

Question 8

Normal good

Answer 8

When the quantity demanded increases so does the price