Discovery Unit 15 Glossary Flashcards Preview

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Flashcards in Discovery Unit 15 Glossary Deck (10):
1

private good

A good that is both excludable and rival.

2

non-excludable

Refers to a good that is either costly or impossible to exclude a person from using it.

3

excludable

Refers to a good that a person can be prevented from consuming.

4

non-rival

Refers to a good that can be consumed by one person and still remain available for consumption in the same amount by another person as well.

5

rival

Refers to a good that, once consumed by one person, is no longer available for consumption in the same amount by another person.

6

Common resource

Type of good that is non-excludable and a rival in consumption. An example is a fish caught in a public pond.

7

Club good

Type of good that is excludable and a non-rival rival in consumption. An example is an on-demand movie.

8

free rider

Refers to a problem that can arise in which people have an incentive to let others pay for a public good and then take advantage of those purchases made by others. The free rider problem can also be expressed in terms of the prisonerメs dilemma game.

9

Tragedy of the Commons

Overuse of common resources.

10

Coase Theorem

Observation that assigning ownership to either party in a property rights dispute will bring about the socially optimal outcome. Named for Ronald Coase,
winner of the 1991 Nobel Prize in economics.