Define the principle of rival consumption. A. idea that subsidies should be given to rival companies in order to encourage competition B. idea that individuals work together to attain private goods because a group can more easily attain private goods than an individual can C. idea that individuals are rivals in consuming private goods because one person’s consumption reduces the amount available for others to consume D. idea that only the strongest entities will be able to attain and consume private goods

Define the principle of rival consumption. A. idea that subsidies should be given to rival companies in order to encourage competition B. idea that individuals work together to attain private goods because a group can more easily attain private goods than an individual can C. idea that individuals are rivals in consuming private goods because one person’s consumption reduces the amount available for others to consume D. idea that only the strongest entities will be able to attain and consume private goods

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 3PA

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Which categories of goods are rival in consumption?a. private goods and club goodsb. private goods and common resourcesc. public goods and club goodsd. public goods and common resources
Rival in Consumption? Yes No Yes A B. Excludable? No Emma's use of good x does not affect anyone else's use of good x. Neither Emma nor anyone else can be prevented from using the good. Good x is an example of the type of good that belongs in O Box C, which represents common resources. O Box A, which represents private goods. O Box D, which represents public goods. O Box B, which represents club goods/natural monopolies.
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Most websites on the internet are usually becomes difficult to access, so it becomes a because they are free to access and everyone who wants to can visit them at the same time. However, sometimes when a lot of people visit a site at the same time, it o non-rival, club good o rival, private good common resources, public good public goods, common resource
Excludable? Yes No Figure 11-1 Rival in Consumption? Yes A C No B D Refer to Figure 11-1. Emma's use of good x does not affect anyone else's use of good x. Neither Emma nor anyone else can be prevented from using the good. Good x is an example of the type of good that belongs in a. Box A, which represents private goods. b. Box B, which represents common resources. O c. Box D, which represents public goods. O d. Box C, which represents common resources.
Spotify and Netflix are the services that are characterized with specific features. Based on Figure 1.1, identify the point that illustrates the specific features of goods for both services. O a. A O b. B O c. C Od. D Clear my choice Excludability → B Rivalry Figure 1.1 A D 1
Macmillan Learning (Figure: Public Goods and Common Resources) Use Figure: Public Goods and Common Resources. The figure lists the type of goods that are available for consumption. Panel D depicts a good that is both nonrival in consumption and nonexcludable. Such a good would be considered a: Rival in consumption Excludable Non- excludable O private good. club good. O public good. common resource. Nonrival in consumption B
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A group of college students throw a party for their graduation. They decide that each of them pick a type of pizza, share all the pizzas and split the total cost evenly. A Tragedy of the Commons problem is likely for each of the following reasons except O each pizza is both excludable and rival in consumption. O when one person eats, he may not consider how his choice affects his friends. O each individual has an incentive to eat as much as possible since no matter how much an individual eats, it would not cost him extra money. O eating the pizzas creates an externality. MacBook Air esc F1 F2 F3 F4 F5 F6 % Q W R Y tab os lock S F త #3
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Discuss the public choice theory or model. How does it relate to rivalness and excludability?