Chapter 11 Lecture Outline - Economics 101H Vandan Desai...

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Economics 101H Vandan Desai P a g e | 1 Chapter 11: Public Goods and Common Resources (Lecture Outline) -------------------------------------------------------------------------------------------------------------------------- “The best things in life are free…” o Free goods provide a special challenge for economic analysis When goods available free of charge , market forces that allocate resources are absent When a good does not have a price attached to it, private markets cannot ensure that the good is produced and consumed in the proper amounts In such cases, government policy can potentially remedy the market failure that results, and raise economic well-being I. The Different Kinds of Goods A. When thinking about the various goods in the economy, useful to group them: i. Is the good excludable? Excludability —refers to property of a good whereby a person can be prevented from using it ii. Is the good rival Rivalry —refers to property of a good whereby one person’s use
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This note was uploaded on 10/31/2010 for the course ECON 202 taught by Professor - during the Fall '08 term at Community College of Baltimore County.

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Chapter 11 Lecture Outline - Economics 101H Vandan Desai...

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