Question 10.7

1. Classify each of the following goods according to whether they are excludable and whether they are rival in consumption. What kind of good is each?

  1. Use of a public space such as a park

    Use of a public park is nonexcludable, but it may or may not be rival in consumption, depending on the circumstances. For example, if both you and I use the park for jogging, then your use will not prevent my use—use of the park is nonrival in consumption. In this case the public park is a public good. But use of the park is rival in consumption if there are many people trying to use the jogging path at the same time or when my use of the public tennis court prevents your use of the same court. In this case the public park is a common resource.

  2. A cheese burrito

    A cheese burrito is both excludable and rival in consumption. Hence it is a private good.

  3. Information from a website that is password-protected

    Information from a password-protected website is excludable but nonrival in consumption. So it is an artificially scarce good.

  4. Publicly announced information on the path of an incoming hurricane

    Publicly announced information on the path of an incoming hurricane is nonexcludable and nonrival in consumption. So it is a public good.