1. Explain what you understand by the claim that the COVID vaccine is a private good with spillover benefits.
2. Given this, why would it make sense for people to receive the vaccine for free or to be paid for getting the vaccine? Explain.

Review of Concepts Introduced in Class on Wednesday October 26^th

We can rank goods by two dimensions: (a) how much is the rivalry of consumption and (b) how difficult is it to exclude someone from consuming the good if that person doesn't pay for the good. We can put together four combinations of these two dimensions.

1. High rivalry of consumption; Very difficult to exclude individuals from consuming the good
2. Low (or no) rivalry of consumption; Very difficult to exclude individuals from consuming the good
3. High rivalry of consumption; very easy to exclude individuals from consuming the good
4. Low (or no rivalry of consumption; very easy to exclude individuals from consuming the good

There are four types of goods to consider.

1. Private Goods.
2. Public Goods.
3. Collective Goods.
4. Common Goods (also referred to as Common Resources)

We matched up the following good.

Private Goods match up with (3): there is high rivalry of consumption and it is easy to exclude individuals from consuming the good

Public Goods match up with (2): low or no rivalry of consumption and very difficult to exclude individuals from receiving benefits from the public good

Collective Goods match up with (4): low or no rivalry of consumption and easy to exclude individuals from receiving benefits from the collective good

Common Goods (Resources) match up with (1): High rivalr y of consumption and very difficult to exclude people from using the resource.