QUESTIONS FOR REVIEW

1. Explain what is meant by a good being excusable. Explain what is meant by a good being rival in consumption.” Is a pizza excusable? Is it rival in consumption?

2_ Define and give an example of a public good. Can the private market provide this good on its own? Explain.

3. Explain what is meant by the term free rider. Can an individual be a free rider when consuming a private good? Why or why not? ‘
4. Defme and give an example of a common resource. Without government intervention, will people use this good too much or too little? Why?

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