Private goods and common resources

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? 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