term1 Definition1term2 Definition2term3 Definition3
Please sign in to your Google account to access your documents:
excludability:
the property of a good whereby a person can be prevented from using it
rivalry in consumption:
the property of a good whereby one person's use diminishes other people's use
private goods:
goods that are both excludable and rival in consumption
ie: ice-cream cones, clothing, congested toll-roads
public goods:
goods that are neither excludable nor rival in consumption
ie: tornado siren, national defense, uncongested nontoll roads
common resources:
goods that are rival in consumption but not excludable
ie: fish in the ocean, the environment, congested nontoll roads
club goods:
goods that are excludable but not rival in consumption
ie: fire protection, cable TV, uncongested toll roads, iTunes songs
free rider:
a person who receives he benefit of a good but avoids paying for it
cost-benefit analysis:
a study that compares the costs and benefits to society of providing a public good
Tragedy of the Commons:
parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole
when one person uses a common resource, she diminishes other people's enjoyment of it
Need help typing ? See our FAQ (opens in new window)
Please sign in to create this set. We'll bring you back here when you are done.
Discard Changes Sign in
Please sign in to add to folders.
Sign in
Don't have an account? Sign Up »
You have created 2 folders. Please upgrade to Cram Premium to create hundreds of folders!