There are two common problems in markets (sometimes described as market failures). For each problem listed below answer the following questions:

(a) Does this problem appear in the market for public, private, common-pool or club goods?

(b) Is the problem because the good is non-rival in use and/or because the good is non-excludable?

(c) Can this problem be resolved? If so, how? If not, why not?

(d) Please give an example of the type of good or market in which this problem appears.

1. Tragedy of the Commons
2. Free-Rider Problem