Economics 101 Practice Test: Public Goods and Common Resources — Flashcards | Economics 101 | FatSkills

Economics 101 Practice Test: Public Goods and Common Resources — Flashcards

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Public goods and common resources are two types of goods that have different characteristics and implications for social welfare. 

In economics, a public good is a good that is both non-excludable and non-rivalrous. This means that one person's use of the good does not diminish its availability to others. For example, fresh air is a public good. 
A common resource is a product or resource that is non-excludable but rival. This means that one person's consumption reduces the availability for others. For example, wild fish stocks in the ocean are a common good. 

Some examples of common resources include: forests, man-made irrigation systems, fishing grounds, and groundwater basins. 

Some examples of public goods include:
Education and knowledge
Environment
Town roads
Parks
Schools
National defense
Basic needs such as access to clean air and drinking water 

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A good is excludable if
people can be prevented from using it.
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