Public Goods and Common Resources - chapter 19

societal norms

Strong ________ can help rebalance the trade-offs involved in consuming common resources by imposing social costs on those who break the "rules "of good behaviour.

Knowledge

________ and technology are typically non- rival, as once something has been thought up or invented, anyone can use it.

Social disapproval

________ carries a higher cost in places where you know the people around you, care about their opinions and expect to interact with them again in the future.

Privatization

________ works when it is possible to divide up a resource and make it excludable by giving a private owner control over its use.

Rivalry

________ has to do with whether or not a good is used up when someone consumes it.

efficient quantity

If the government is supplying a public good, the ________ is the one at which the marginal benefit equals the cost.

public good

A(n) ________ can be made excludable through patents and copyrights.

straightforward public

Banning or limiting the use of common resources is a(n) ________ policy approach to solving the problem of overuse.

competitive firms

Price charged by ________ doesn't capture the true costs and benefits of consumption.

Non-excludability

________ causes people to demand a higher quantity than they would if they had to pay for what they consumed.

Excludability

________ matters because it allows owners to set an enforceable price on a good.

free-rider problem

The ________ leads to market failure as markets typically undersupply public goods

Government provision

when the government steps in to provide the good directly.

common resources

Demand for ________ is characterized by inefficiently high demand and dwindling quantity.

Tradeable allowances

________ create a market for the rights to consume a common resource.

Public goods

________ and common resources are closely tied to the problems of externalities.