Question

Answer the following questions:

1) Give an example of a public good that you consume.             

        → Explain how it is neither excludable nor rival in consumption.

2) Give an example of a club good that you consume.

        → Explain how it is excludable but not rival in consumption.

3) Give an example of a private good that you consume.    

        → Explain how it is both excludable and rival in consumption.

4) Give an example of a common resource that you consume.

        → Explain how it is rival in consumption but not excludable.

Answer 1

Ans:

1. Defence. Since it provides security to people. People cannot be removed from its consumption and one's consumption cannot reduce quantity for other.
2. Cable television. People can be excluded by not providing connections but one's consumption cannot reduce quantity to others.
3. Milk. People can be excluded by depriving them of milk and one's consumption can reduce quantity to others due to its scarce nature.
4. Open wells. People cannot be excluded from its use but one's consumption can reduce quantity to others.

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