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Question 1 of 5

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You must read each slide, and complete any questions on the slide, in sequence.

Consider the following goods. Are they public goods or private goods, or do they fall into a different classification?

Watermelons are and . Therefore, they are a .

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The consumption of a watermelon means that someone else cannot use it, so it is rival. They also can be kept from those who do not pay for them. Rival and exclusive goods are pure private goods.

Movie tickets are and . Therefore, they are a.

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The purchase of a ticket means that someone else cannot use it or sit in the same seat, so it is rival. Tickets also can be kept from those who do not pay for them. Rival and exclusive goods are pure private goods.

Movie downloads from a subscription site are and . Therefore, they are a .

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The download of a movie does not keep another person from downloading the same movie, so it is nonrival. But downloads can be kept from those who do not pay for the subscription through a paywall. Nonrival and exclusive goods are public goods with exclusion.

Movie views from a free video site such as YouTube are and . Therefore, they are a .

3
The viewing of a movie does not keep another person from watching the same movie, so it is nonrival. But with no paywall, non-payers cannot be excluded. Nonrival and nonexclusive goods are pure public goods.

A litter-free park is considered to be and . Therefore, it is a(n) .

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One person’s piece of garbage makes the park dirtier, lowering the cleanliness level for other users. But, all are welcome to use the park. Rival and nonexclusive goods are common property resources.