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Questions and Answers
What characteristic defines a public good?
What characteristic defines a public good?
- Rival and excludable
- Nonrival and excludable
- Rival and nonexcludable
- Nonrival and nonexcludable (correct)
What is a key reason why markets do not exist for nonexclusive public goods like clean air?
What is a key reason why markets do not exist for nonexclusive public goods like clean air?
- They are nonexcludable (correct)
- They are difficult to produce
- There is no demand for them
- They are nonrival in consumption
Which type of good is subject to exclusion but is nonrival in consumption?
Which type of good is subject to exclusion but is nonrival in consumption?
- Public good
- Private good
- Club good (correct)
- Common-pool resource
What does the social demand curve for a public good represent?
What does the social demand curve for a public good represent?
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In what scenario can markets exist for public goods?
In what scenario can markets exist for public goods?
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Why can too little production occur when it comes to public goods?
Why can too little production occur when it comes to public goods?
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What does a private good possess that a public good does not?
What does a private good possess that a public good does not?
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Which type of intervention is rare when it comes to regulating club goods?
Which type of intervention is rare when it comes to regulating club goods?
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Which type of good produces a positive externality?
Which type of good produces a positive externality?
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Why is excluding anyone from consuming a public good considered inefficient?
Why is excluding anyone from consuming a public good considered inefficient?
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