CH19: Public Good
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/25
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai | Chat |
|---|
No analytics yet
Send a link to your students to track their progress
26 Terms
What is the free-rider problem?
When people use a good or service without paying for
it
Which situation is an example of the free-rider problem?
People watch a fireworks show without paying
Which situation is an example of the free-rider problem?
Everyone uses streetlights even if they do not directly pay for them
What is the tragedy of the commons?
When people overuse a shared resource because
they do not consider the harm their use causes to
others
Which situation is an example of the tragedy of the commons?
Too many fish are caught from a shared lake
What is excludability?
If people can be prevented from using it
What is rivalry?
One person’s use reduces another person’s ability to use it
If you ask “Can you stop people from using it?” what concept is being tested?
Excludability
If you ask “Does using it leave less for others?” what concept is being tested?
Rivalry
What is a private good?
A good that is rival and excludable
Which is an example of a private good?
A phone
What makes a private good different from other goods?
You have to pay, and if you use it, others cannot use it
at the same time
What is an artificially scarce good?
A good that is non-rival but excludable
Which is an example of an artificially scarce good?
A subscription service
Why is a gym membership an artificially scarce good?
You have to pay to use it, but many people can use it
What are common resources?
Goods that are rival but non-excludable
Which is an example of a common resource?
Fishing in public waters
Why can common resources create problems?
People may overuse them because they are available
to everyone
What are public goods?
Goods that are non-rival and non-excludable
Which is an example of a public good?
National defense
Why are public goods often provided by the government?
Because people can use them without paying,
creating a free-rider problem
Classify a subscription service
Artificially scarce good
Classify clean air
Common resource
Classify streetlights
Public good
Classify clothes
Private good