Explain why cable television is not a pure private good
What will be an ideal response?
Pure private goods are those that are excludable and which are rival in consumption. Cable television clearly is excludable because only those that pay may receive the service. However, it is not a good for which there is rivalry in consumption. That is one person's enjoyment of the cable television doesn't interfere with anyone else's enjoyment of it.
You might also like to view...
From which of the following goods is it most difficult to exclude free riders?
A) Tickets for the Newport Jazz Festival B) Food and beer sold at the Newport Jazz Festival C) Programs and souvenirs sold at the Newport Jazz Festival D) A radio simulcast of the Newport Jazz Festival
In the 1980s, Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction?
A) The Japanese government wanted more automobiles to be available for export to countries other than the United States. B) The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S. government. C) The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers. D) Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the United States.