Question

In: Economics

2. For each of the following goods, state whether it is excludable or nonexcludable. a. cable...

2. For each of the following goods, state whether it is excludable or nonexcludable.

a. cable TV service

b. free public wifi

c. the local public library

d. a ride in an Uber, Lyft, or taxi

3. For each of the following goods, state whether it is rival or non-rival.

a. a large public park

b. a freeway that requires toll payments

c. a freeway that does not require toll payments

d. a fresh avocado from the supermarket

4.  NOTE: read carefully on page 310 in your textbook before responding.

a. Suppose you buy a new pair of headphones. Is your purchase rival or non-rival? Is it excludable or nonexcludable? Briefly explain why.

b. Suppose that by living in the United States, you benefit from strategic reserves of petroleum held by the U.S. government (Links to an external site.). Is your benefit rival or non-rival? Is it excludable or nonexcludable? Briefly explain why.

5. A postage stamp is something offered by the federal government in the United States. Think about a postage stamp in the context of rival/non-rival and excludable/nonexcludable. With that in mind, is a postage stamp classified as a "private good" or "public good" in the United States?

Solutions

Expert Solution

2) a- cable television service- excludable

b. free public wifi- non excludable

c. the local public library- non excludable

d. a ride in an Uber, Lyft, or taxi- excludable

3)

a. a large public park- non rival

b. a freeway that requires toll payments- non rival

c. a freeway that does not require toll payments- non rival

d. a fresh avocado from the supermarket- rival

4)a- purchase of a new pair of headphones is non-rival but excludable. It is non rival because it's use by sone other person will not lower the amount of utility i will get from it but it's excludable because i can exclude the people i don't want to share it with.

B) the strategic reserve of petroleum is both rival and excludable because the one who has money purchases it. And also use by one person reduces the amount available for others.

5) a postage stamp is neither a private. good because it is excludable and rival in nature.

Rahul Sunny answered 2 years ago
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