How does a pure public good differ from a club good? In your answer, give an example of each type of good
What will be an ideal response?
A pure public good is nonrival (many people can use it simultaneously) and nonexcludable (anyone can consume the good without paying for it). An example is national defense. A club good is excludable, but nonrival. This means that people who do not pay for the good do not consume it, but one person's consumption does not affect the consumption of anyone else. An example is a toll road.
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The geographical distribution of resources such as skilled labor has little effect on firm location decisions
Indicate whether the statement is true or false
Which of the following is true regarding private ownership?
a. Relative to common ownership, private ownership generally leads to less conservation of resources. b. With private ownership, owners are held accountable for using their resources in a manner that harms the resources of others. c. Private ownership generally gives the owner little incentive to find ways to use the resource wisely. d. With private ownership, resource owners have little incentive to consider the preferences of others when deciding how to employ a resource.