Public Goods, Common Resources And Merit Goods

Question 0

Private sector

Answer 0

Part of the economy where business activity is owned, financed and controlled by private individuals

Question 1

Public sector

Answer 1

Part of the economy where business activity is owned, financed and controlled by the state, and goods and services are provided by the state on behalf of the pop as a whole

Question 2

Private goods

Answer 2

Excludable and rival

Question 3

Public goods

Answer 3

Neither excludable or rival

Question 4

Common resources

Answer 4

Rival but non excludable

Question 5

Natural monopoly

Answer 5

Excludable but non rival

Question 6

Free rider

Answer 6

Person who receives benefit of a good but avoids paying for it

Question 7

Contingent valuation methods

Answer 7

Survey based approach to overcome some of the problems with cost benefit analysis
Aims to place monetary value on a good through getting respondent to state a preference and willingness to pay

Question 8

Tragedy of the commons

Answer 8

Parable that illustrates why common resources get used more than is desirable from the standpoint of society as a whole

Question 9

Merit goods

Answer 9

Goods which can be provided by the market but may be under-consumed as a result

Question 10

Intertemporal choice

Answer 10

Where decisions made today can affect choices facing individuals in the future

Question 11

Demerit goods

Answer 11

Over consumed in market mechanism