Chapter 6 review

Identify the PUBLIC GOOD from the list below

• Pizza

• Toll Roads

• Fish in a lake

• National Defense

Identify the RIVAL GOOD from the list below

• A piece of paper

• Radio broadcast

• Air

• Television Show

Identify the two EXCLUDABLE GOODS from the list below.

• Cable Television

• Bottle of Water

• Local Park

• Highways

Public Good

• Rival - Excludable

• Rival – Non-Excludable

• Non-Rival - Excludable

• Non-Rival – Non-Excludable

Private Good

• Rival - Excludable

• Rival – Non-Excludable

• Non-Rival - Excludable

• Non-Rival – Non-Excludable

Common Resource

• Rival - Excludable

• Rival – Non-Excludable

• Non-Rival - Excludable

• Non-Rival – Non-Excludable

Club Good

• Rival - Excludable

• Rival – Non-Excludable

• Non-Rival - Excludable

• Non-Rival – Non-Excludable

Who has the absolute advantage in cleaning their room?

John can do it in 12 min

Abe can do it in 9 min

Alexis can do it in 8 min

Lexie can do it in 13 min

• John

• Alexis

• Abe

• Lexie

What is the definition of COMPARATIVE ADVANTAGE?

• The ability to ruin every product others make

• The ability to make a product faster than others

• The ability to make a product at a lower opportunity cost

• The ability to make more of a product than others

Which definition below is for POSITIVE EXTERNALITY

• The cost incurred by the producer or consumer of a good or service.
• The benefit received by a third party from the production or consumption of a good or service.
• The benefit received by the producer or consumer of a good or service.
• The cost incurred by a third party from the production or consumption of a good or service.