Question

2. What kind of good is it? Determine whether each of the following goods is a private good, a public good, a common resource, or a club good. Private Good Public Good Common Resource Club Good A cabana along a beach that is open to the public A large, beautiful statue in a park A new keyboard for you to play in your friend's band Grade It Now Save & Co

Answer 1

Private good Public good Common resource Club good A cabana along a beach that is open to the public A large beautiful statue in a park A new keyboard for you to play in your friend's band. Public goods are those goods which are non excludable and non rival in consumption. The cabana along the beach opens to the public. It is not possible to prevent a person from using it. It is non rival in consumption. When a person consuming it, the same good is available for the other. Hence it is a public good. The statue is also public goods because its consumption is available at free of cost and the same goods can be used by another person. Hence it is non excludable and non rival in consumption. Private goods are those goods which are excludable. The person who does not pay for it can be excluded from consumption. In case of private goods there is rivalry in consumption. One good that a person is consuming is not available for the other for consumption. Hence a new keyboard for you to play in your friend's band is private goods.