Chapter 11 - Public Goods and Common Resources

Common resources

________: goods that are rival in consumption but not excludable.

National defense

________ is not excludable nor rival in consumption.

Excludability

________: the property of a good whereby a person can be prevented from using it.

Clean air

________ and water, and congested roads are forms of common resources.

Property rights

________ can make the allocation of resources more efficient if they 're well- run and planned.

Rivalry

________ in consumption: the property of a good whereby one person's use diminishes other people's use.

free rider problem

The ________ keeps private markets from supplying public goods.

Free rider

________: a person who receives the benefit of a good but avoids paying for it.

US federal government

The ________ spent $ 744 billion on national defense in 2017.

common resources

The tragedy of the Commons: a parable that illustrates why ________ are used more than is desirable from the standpoint of society as a whole.