Goods, Service & Price

Question 1

Goods

Answer 1

Physical product that can be purchased

Question 2

Service

Answer 2

Labour that can be purchased

Question 3

Excludable

Answer 3

Need to be purchased for use

Question 4

Rival

Answer 4

Purchase reduces the availability for other customers

Question 5

Private goods

Answer 5

Excludable (need to be payed) and rival (consumption reduces availability)

Question 6

What good is a limited-edition shirt

Answer 6

Private

Question 7

Common goods

Answer 7

Non-excludable (cannot be payed), but rival

Question 8

What good is fishing in international waters? (no payment, but reduced numbers)

Answer 8

Common

Question 9

Club goods

Answer 9

Excludable (must be payed), but doesn’t reduce the amount left

Question 10

What good is a Netflix membership? (needs to be payed, but everyone can have it)

Answer 10

Club

Question 11

Public goods

Answer 11

Available to everyone, and non depleted by use;
Non-excludable, non-rival

Question 12

What good is air, education?

Answer 12

Public

Question 13

What good is a wild flower? (free, but depeleted)

Answer 13

Common

Question 14

What good is a Starbucks coffee

Answer 14

Private

Question 15

Price

Answer 15

An exchange of goods and services for money.

Question 16

Barter exchange

Answer 16

Direct exchange of goods, perceived as the same value.

Question 17

What factors influence the price?

Answer 17

Consumer demand, competing brands, legal restrictions and cost of production (capital, land, labor, entrepeneur)

Question 18

Monopoly

Answer 18

Exclusive possession dominance of a commodity by one firm; Absence of competition. Can often lead to fixed prices.

Question 19

Snob appeal

Answer 19

Illusion/belief that purchase of a good can elevate one’s social status