Chapter+11+(JEM)+-+Public+Goods+and+Common+Goods

Goods differ in whether they are excludable and rival in consumption. Then What are Excludable? and What are Rival in Consumption?

 * 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

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__A) Rival__       __B) Non-excludable__ __C) Non-Rival__       __D) Excludable__ __A good or service that can be consumed simultaneously by everyone and from which no one can be excluded is called a__ __A) Public good__    __B) Externality__ __C) Free good__ __D) Scarce good__ __If the use of a good, service, or resource by one person does not decrease the quantity available for someone else, it is said to be __  __A) Non-Rival__    __B) Non-Excludable__ __C) Rival__    __D) Excludable__ __The absence of an incentive for people to pay for what they consume is known as__ __A) the Free rider problem__    __B) Public choice theory__ __C) rational ignorance__    __D) the principal of minimum differentiation__ __The value of a public good is the maximum amount that__ __A) all the people are willing to purchase at the market price. __         __ B)  one person is willing to purchase at the market price. __                ______ C)  __ __ __all the people are willing to pay for one more unit of it.__ __                 ______ D)  __ __ __one person is willing to pay for one more unit.__ __   <span class="Apple-style-span" style="font-size: 12px; line-height: normal; -webkit-border-horizontal-spacing: 5px; -webkit-border-vertical-spacing: 5px;"> **ANSWERS: <span class="Apple-style-span" style="font-size: 12px; line-height: normal; -webkit-border-horizontal-spacing: 5px; -webkit-border-vertical-spacing: 5px;"> <span class="Apple-style-span" style="font-size: 12px; line-height: normal; -webkit-border-horizontal-spacing: 5px; -webkit-border-vertical-spacing: 5px;"> 1)D <span class="Apple-style-span" style="font-size: 12px; line-height: normal; -webkit-border-horizontal-spacing: 5px; -webkit-border-vertical-spacing: 5px;">  2)A <span class="Apple-style-span" style="font-size: 12px; line-height: normal; -webkit-border-horizontal-spacing: 5px; -webkit-border-vertical-spacing: 5px;"> 3)A <span class="Apple-style-span" style="font-size: 12px; line-height: normal; -webkit-border-horizontal-spacing: 5px; -webkit-border-vertical-spacing: 5px;">  4)A <span class="Apple-style-span" style="font-size: 12px; line-height: normal; -webkit-border-horizontal-spacing: 5px; -webkit-border-vertical-spacing: 5px;"> 5)C**
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 * QUICK QUIZ!**<span class="Apple-style-span" style="color: rgb(53, 53, 52); font-family: Verdana; line-height: normal;"> __If it is possible to prevent someone from enjoying the benefits of a good, service, or resource, it is said to be__