Chapter 1. Chapter 13

Step 1

Solved Problems

true

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

Question

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

Watermelons are p1qaddst6agspIsnIFUVTiMOXgQ= and 5aJS1nJsueFj3PZpxqRputmxuj0zipLIxi6wGw==. Therefore, they are a w16Fz865IeCBzWoUTfJoiA3PB28yq1KqrSgBIkxJTYL+HZeYVn+YRUqtVq81KK1TFp/BWXIBLGSz3sz4ybt6wV0pp4bwAwQzVaPkeGmxCuYt1stzadlx3Y5VU5s=.

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.

Step 2

Question

Movie tickets are p1qaddst6agspIsnIFUVTiMOXgQ= and 5aJS1nJsueFj3PZpxqRputmxuj0zipLIxi6wGw==. Therefore, they are aw16Fz865IeCBzWoUTfJoiA3PB28yq1KqrSgBIkxJTYL+HZeYVn+YRUqtVq81KK1TFp/BWXIBLGSz3sz4ybt6wV0pp4bwAwQzVaPkeGmxCuYt1stzadlx3Y5VU5s=.

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.

Step 3

Question

Movie downloads from a subscription site are 59qht9hxlj9+KPIh3cWLZh3UOk4= and 5aJS1nJsueFj3PZpxqRputmxuj0zipLIxi6wGw==. Therefore, they are a 1TeabNOtDoxBJKl/BY/xvysrM7hEXOJMEhD6bnzMNEPhBpMlNjC/CiE56o5xMrh0GU5mznR7mcnr331YOWruzh0i5SwxFYFSgopKP/UD7cYMi9T/lsMhh390/kQ=.

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.

Step 4

Question

Movie views from a free video site such as YouTube are 59qht9hxlj9+KPIh3cWLZh3UOk4= and KvGd8rTTGphd2YcV8eEz9blfx2I40R8W0FFsdg==. Therefore, they are a +uSxnyRKFsnXHjRt8rhsPmwsPSWP62nIvHbda60jjMmmNMD46GOc6dTIiGAMCSkj52iSatHY2ur0Ag7nXVMzALwEMetboQsqzTpdlzoOxu/YxOR7Nm+ukuTYVvQ=.

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.

Step 5

Question

A litter-free park is considered to be p1qaddst6agspIsnIFUVTiMOXgQ= and KvGd8rTTGphd2YcV8eEz9blfx2I40R8W0FFsdg==. Therefore, it is a(n) fdUMdyf5WFIhpqqyRsfRNHMABLyMx8Ll0XRIx8hcYB/bbOj57M3j5yYcuTyzGe4z24TlJ31EY9UTR9GgLSagSpZ00E6qqIXwMVe+pt0YHORn7QOBHa+THr469GE=.

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.