Chapter 11 Cengage: Public Goods and Common Resources

What is the definition of a free rider?

A free rider is someone who receives the benefit of a good but does not pay for it.

What is the definition of the Tragedy of the Commons?

The Tragedy of the Commons occurs when people consume more of a common resource than society would desire

What is the definition for a rival good in consumption? a. Consumption of the good by one person decreases the ability of other people to consume the good. b. Consumption of the good by one person does not decrease the ability of other people to consume the good. c. It is not possible to prevent an individual from using the good. d. The satisfaction derived from consuming the good is affected by the price a consumer pays for the good. e. Those who are unwilling or unable to pay for the good do not obtain its benefits.

a. Consumption of the good by one person decreases the ability of other people to consume the good.

If a good that is both excludable and rival in consumption, then it is ______________. a. a private good b. a club good c. a common resource d. a public good

a. a private good

If a good that is excludable but is also non-rival in consumption, then it is ______________. a. a private good b. a club good c. a common resource d. a public good

b. a club good

If a good that is non-excludable but is also rival in consumption, then it is ______________. a. a private good b. a club good c. a common resource d. a public good

c. a common resource

If a good that is both non-excludable and non-rival in consumption, then it is ______________. a. a private good b. a club good c. a common resource d. a public good

d. a public good

What is the definition for excludable? a. Consumption of the good by one person decreases the ability of other people to consume the good. b. Consumption of the good by one person does not decrease the ability of other people to consume the good. c. It is not possible to prevent an individual from using the good. d. The satisfaction derived from consuming the good is affected by the price a consumer pays for the good. e. Those who are unwilling or unable to pay for the good do not obtain its benefits.

e. Those who are unwilling or unable to pay for the good do not obtain its benefits.