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13 Cards in this Set
- Front
- Back
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excludable
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people can be prevented from using it...
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rival in consumption
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one person's use diminishes other people's use... something that is nonrival in consumption would be UNLIMITED in quantity
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private goods
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both excludable and rival in consumption
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public goods
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neither excludable nor rival in consumption
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common resources
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rival in consumption but NOT excludable
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natural monopolies
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rival in consumption but NOT excludable
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goods that are not excludable
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-public goods
-common resources |
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important public goods
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-basic research
-national security -fighting poverty/welfare |
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examples of common resources
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-fish
-the environment (clean air/water) -congested nontoll roads |
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examples of private goods
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-ice cream cones
-clothing -congested toll roads |
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examples of natural monopolies
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-fire protection
-cable tv -uncongested toll roads |
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examples of public goods
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-tornado sirens
-national defense -uncongested nontoll roads |
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Tragedy of the Commons
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explains why common resources are used more than is desirable from the standpoint of society... i.e. the public pasture in the 18th century town
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