Schedule C+D

Question 1

What is a private good

Answer 1

Goods that firms are able to provide to generate profits, they can generate profits as those goods are rival and excludable

Question 2

What is excludable

Answer 2

The firm is able to exclude certain customers from purchasing their goods through price mechanism. If consumers cannot afford them, they are excluded

Question 3

What is rival

Answer 3

Can only be used be consumed by a single user. Consumers compete for these goods which are limited in supply and this rivalry helps to generate profits for firms

Question 4

What are public goods

Answer 4

Goods that are beneficial to society, e.g. streetlights. They are not provided by private firms due to the principles of non-excludable and non-rivalrous

Question 5

What is non excludable

Answer 5

Means that any one can access these resources without having to pay for them. His usually occurs because no one owns the resource

Question 6

What is non rivalrous

Answer 6

Is when one person consuming it does not prevent another person from consuming it. They are finite in supply.

Question 7

What is free rider problem

Answer 7

This is a sitaution where customers realise that they can still access the goods even without paying for them. Causes them to become under provided - missing market - complete market failure

Question 8

What is a quasi public goods

Answer 8

Quasi public goods are non-pure public goods that have characteristics of public goods and private goods

Question 9

What is the tragedy of the commons

Answer 9

Describes a sitaution when individuals with acess to a public, unregulated resource(a common), act in self interest over the well being of society

Question 10

What are common pool resources and examples

Answer 10

Natural resources over which no private ownership has been established. They are non-excludable but rivalrous in consumption.
- oceans
- natural forest
- water sources such as rivers