Chapter 11 Micro Final Flashcards Preview

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Flashcards in Chapter 11 Micro Final Deck (26):
1

Common resources

Rival in consumption but NOT excludable

2

Excludable goods

Good that someone can be prevented from using

3

What is an example of a tragedy in commons

The Atlantic Ocean running out of fish due to people over fishing in it

4

What is an example of a Natural Monopoly

When Luxottica naturally started taking over sunglasses companies. Eventually they started taking over Lens Crafter, Ray Bands and Sunglasses Hut.

5

What is the tragedy of the commons?

Overuse of the resource that leads to an elimination of it

6

Private goods

You can stop people from consuming it
Also effects others from purchasing the good

7

What is an example of a rival good?

Cars
Clothing

8

Rival Good

A good consumers compete against that takes away from others use

9

What is an example of a public good?

National Defense

10

What is an example of a free rider

Wegmans hosting a free tasting event
They encourage $5 donations to cancer fund
I do not donate and just eat the food for free

11

Club Good

Anyone can enjoy it but everyone can IF they pay for it

12

Free Rider

Someone who consumes a service without paying for it

13

What is an example of an excludable good?

Fish Tacos

14

Subsidy

Money given to the consumers through the government

15

Non-Rival Good

Can be used multiple times and never goes away

16

What is an example of a private good?

Food

17

When something increases at a decreasing rate...

It slows down but continues to increase

18

Value

The Money gained from anything

19

Non excludable goods

A good that any one can use NO MATTER WHAT

20

What is an example of a non excludable good?

Radio Signals

21

What are 3 solutions of the tragedy of the commons?

Regulations
Taxes
Zoneing

22

What does the changing slope of the total cost curve reflect?

Decreasing the marginal product

23

What is an example of a non rival good?

Demi Lovato Song on iTunes

24

What is an example of a common resource?

Fish in the ocean

25

Public goods

When I don't pay for it and me enjoying it does not impact others

26

What is an example of a club good?

Gym Membership

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