ECONOMICS HW

Rival in Consumption Nonrival in Consumption Excludable Private Goods Club Good (Artificially Scarce - Grain Resources) - Prescription sunglasses - Downloadable music - Cable TV Non-Excludable Common Resources Public Goods - Roads - National Defense - BC Salmon - Fire Rescue Free Rider Non-excludable goods suffer from a free-rider problem. A free rider is a person who enjoys the benefits without paying a share of the costs; e.g. group projects at university Classic Example Tragedy of the Commons Ownership Chickens (owned) not endangered Salmon (not owned) endangered 16-Private Goods and Common Resources-Homework Questions 1. Using the table provided in your notes, classify an on-line university education. Rationalize your answer. 2. Why are most sh endangered but livestock (chicken, cows, sheep) aren't