Complete the following table by selecting the appropriate definition for each of the given terms

Economics Jan 16, 2021

Complete the following table by selecting the appropriate definition for each of the given terms. If a good is both nonexcludable and rival in consumption, then it is

Expert Solution

A good is nonexcludable if it is impossible to exclude non-paying individuals from consumption of the good. Eg. streetlight consumption cannot be excluded from people living in the street who did not pay for its installation.

A good is rival if its consumption by one consumer prevents simultaneous consumption by other consumers. Eg. a jacket can only be worn by one person at a time

If a good is both nonexcludable and rival in consumption, then it is common good (Eg. open areas for grazing)

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