Chapter 11 Questions for Review answers

Chapter 11 Questions for Review answers - Chapter 11...

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Unformatted text preview: Chapter 11 Questions for Review answers 1. An excludable good is one that people can be prevented from using. A good that is rival in consumption is one for which one person's use of it diminishes another person's enjoyment of it. Pizza is both excludable, because a pizza producer can prevent someone from eating it who doesn't pay for it, and rival in consumption, because when one person eats it, no one else can eat it. 2. A public good is a good that is neither excludable nor rival in consumption. An example is national defense, which protects the entire nation. No one can be prevented from enjoying the benefits of it, so it is not excludable, and an additional person who benefits from it does not diminish the value of it to others, so it is not rival in consumption. The private market will not supply the good, because no one would in consumption....
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This note was uploaded on 01/16/2012 for the course PSYCH 373 taught by Professor Marthafaircloth during the Spring '09 term at Campbell University .

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