Section 1

Give an example of a good or service that falls into each of following categories.

• Rival
• Nonrival
• Excludable
• Nonexcludable

Lastly, based on those four concepts give one example of each of the following.

• Private Good/Service
• Public Good/Service

Section 2

Historically consumers have had to take "leaps of faith" when making some purchases. This happens any time you cannot predict with 100% certainty everything of importance about a product (Ex. Quality, Reliability, Longevity, etc. ). In these situations you must assess everything that you can about the product and determine if you have enough data to be willing to still make the purchase.

Think back to a product that you were interested in buying but you had to hesitate about due to some kind of "unknown detail" related to it.

• What was the product?
• What was causing your hesitation?
• Did you buy it?
  • If Yes, was there something that helped you make that decision?
  • If No, what do you wish would have been available to you to help make that decision?