ECN 212 Test Questions with 100% Correct
Answers
Excludeability
the property of a good whereby a person can be prevented from using it
rivalry in consumption
the property of a good whereby one person's use diminishes other people's use
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
Club Goods
goods that are excludable but not rival in consumption
Free Rider
a person who receives the benefit of a good but avoids paying for it
Cost Benefit Analysis
a study that compares the costs and benefits to society of providing a public good
Tragedy of the Commons
Answers
Excludeability
the property of a good whereby a person can be prevented from using it
rivalry in consumption
the property of a good whereby one person's use diminishes other people's use
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
Club Goods
goods that are excludable but not rival in consumption
Free Rider
a person who receives the benefit of a good but avoids paying for it
Cost Benefit Analysis
a study that compares the costs and benefits to society of providing a public good
Tragedy of the Commons
