Types of Goods and Resources in Economics

Flashcards covering key concepts related to public goods, private goods, common resources, and club goods.

Private Goods

Goods that are both rivalrous and excludable, where consumption by one reduces availability for others.

Rivalrous Good

A good where consumption by one person decreases the amount available for consumption by others.

Excludable Good

A good where access is restricted to paying customers or individuals.

Public Goods

Goods that are non-rivalrous and non-excludable, benefiting everyone regardless of payment.

Non-Rivalrous Good

A good that can be consumed by multiple people simultaneously without diminishing its availability.

Non-Excludable Good

A good that is available to all individuals, whether they have paid for it or not.

Free Rider Problem

A situation where individuals benefit from resources they do not pay for, leading to underproduction of public goods.

Common Resource

A good that is rivalrous in consumption but non-excludable, leading to limited availability.

Club Goods

Goods that are non-rivalrous and excludable, where access is limited to members or paying customers.

SiriusXm

An example of a club good that provides satellite radio service, which is excludable and non-rivalrous.

Traffic Jams

An example of a common resource issue where too many cars use a non-toll highway, causing congestion.

Fishing Industry Regulation

The need for tighter regulation to maintain sustainable fish populations for long-term food security.