Chapter 11 - Public Goods and Common Resources

Common resources

: goods that are rival in consumption but not excludable.

National defense

is not excludable nor rival in consumption.

Common resources

: goods that are rival in consumption but not excludable.

National defense

is not excludable nor rival in consumption.

Patents

give inventors exclusive rights to the knowledge for a period of time.

Clean air

and water, and congested roads are forms of common resources.

Excludability

: the property of a good whereby a person can be prevented from using it.

free rider problem

The keeps private markets from supplying public goods.

Property rights

can make the allocation of resources more efficient if they 're well- run and planned.

Rivalry

in consumption: the property of a good whereby one person's use diminishes other people's use.

Free rider

: a person who receives the benefit of a good but avoids paying for it.

US federal government

The spent $ 744 billion on national defense in 2017.

Club goods

_: goods that are excludable but not rival in consumption.

Excludability

_: the property of a good whereby a person can be prevented from using it.

Private goods

: goods that are both excludable and rival in consumption.

Public goods

____: goods that are neither excludable nor rival in consumption.

Common resources

__: goods that are rival in consumption but not excludable.