Unit 7Classification of Goods Quiz

What characteristic defines a good as excludable?

• It can be consumed by anyone without paying.

• It is impossible to prevent someone from enjoying its benefits.

• It is possible to prevent someone from enjoying its benefits.

• Its use does not decrease the quantity available for someone else.

Which of the following is an example of a nonexcludable good?

• Brink's security services

• A concert on network television

• Food at a restaurant

• A car

What does it mean if a good is rival?

• One person's use of it does not decrease the quantity available for someone else.

• It is impossible to prevent someone from enjoying its benefits.

• One person's use of it decreases the quantity available for someone else.

• Everyone can benefit from it without paying.

Which of the following is an example of a nonrival good?

• A fish in the Atlantic Ocean

• A car

• A Brink's truck delivering cash

• Police services

What are the characteristics of a private good?

• Nonrival and nonexcludable

• Rival and excludable

• Nonrival and excludable

• Rival and nonexcludable

Which of the following is an example of a public good?

• Internet

• National defence

• Cable television

• Bridge or tunnel

What is a common resource?

• A good that is rival and excludable

• A good that is nonrival and nonexcludable

• A good that is rival and nonexcludable

• A good that is nonrival but excludable

Which of the following is an example of a club good?

• National parks

• The law

• Netflix

• National defence

What happens when an additional user uses a club good?

• It decreases the enjoyment of the good for other users.

• It increases the cost of the good for other users.

• It has no impact on the enjoyment of the good for other users.

• It makes the good nonexcludable for other users.

Why is weather forecasting considered a public good?

• It is provided by a private firm and is nonexcludable.

• It is nonexcludable and nonrival, and has a free-rider problem.

• It is excludable and nonrival, and has a free-rider problem.

• It is nonexcludable and rival, and has no free-rider problem.