How do public goods differ from common pool resources? Explain
What will be an ideal response?
Public goods are not the same as common pool resources. While both are non-excludable, unlike public goods, common pool resources are rival in consumption. This means that as more of a common pool resource is used, less of the good is available to others. With public goods, however, a single individual's consumption does not affect the quantity of the good that others can consume.
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Refer to Table 9-12. Which country has an absolute advantage in producing belts?
A) Estonia B) Morocco C) both countries D) neither country
The Rand Corporation estimates that the external costs imposed by alcohol consumption (for example, deaths caused by drunk drivers) to be 48 cents per ounce consumed. Taxes on alcohol amount to 23 cents per ounce consumed. This information suggests: (i) alcohol is overconsumed; (ii) alcohol taxes should be raised. Which of these statements is correct?
a. i and ii b. i not ii c. ii not i d. neither i nor ii