Class16_04 - Class Notes(covers part of Chapter 14 in the...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
16/04/2008 Class Notes (covers part of Chapter 14 in the textbook) Class Outline Public Goods Public Goods Good, services and resources differ in the extent to which people can be excluded from consuming them. Def. Excludable Good A good, service, or resource is excludable if it is possible to prevent a person from enjoying its benefits. Def. Nonexcludable Good A good, service, or resource is nonexcludable if it is impossible to prevent a person from enjoying its benefits. Def. Rival Good A good, service, or resource is rival if its consumption by one person decreases its consumption by other people. Def. Nonrival Good A good, service, or resource is nonrival if its consumption by one person does not decrease its consumption by other people. Goods are classified in 4 groups :
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Public goods create a free-rider problem because the quantity of the good that a person is able to consume is not influenced by the amount that the person pays for the good, so no
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern