1. Characteristics of goods Aa Aa If a good is excludable, that means: O Suppliers of the good can prevent people who don\'t pay from consuming it O The same unit of the good cannot be consumed by more than one person at the same time Suppliers cannot prevent consumption of the good by people who do not pay for it O More than one person can consume the same unit of the good at the same time O The satisfaction derived from consuming the good is affected by the price a consumer pays for the good If a good is rival, that means: O The satisfaction derived from consuming the good is affected by the price a consumer pays for the good O Suppliers of the good can prevent people who don\'t pay from consuming it O The same unit of the good cannot be consumed by more than one person at the same time O Suppliers cannot prevent consumption of the good by people who do not pay for it O More than one person can consume the same unit of the good at the same time If a good is nonexcludable and nonrival, then it is a public good an artificially scarce good a private good a common resource
1) If the good is excludable, that means:
Solution: Suppliers of the good can prevent people who don\'t pay from consuming it
Explanation:
A good is categorised excludable when the good supplier can prevent people who do not pay from consuming it.
2) If the good is rival, that means:
Solution: The same unit of the good cannot be consumed by more than one person at the same time.
Explanation: A good is categorised rival in consumption when the same unit of the good are not allowed to be consumed by more than one person at the same time
3) If a good is non-excludable and non-rival, then it is
Solution: public goods
Explanation: The private goods are excludable and rival in consumption; conversely public goods are non-rival and non-excludable in nature
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