AP Microeconomics / Unit 6: Market Failure and the Role of Government
6.3 Public and Private Goods
Notes
- Private goods: rival and excludable.
- Public goods: nonrival and nonexcludable (national defense); markets underprovide because of free riders.
- Common resources: rival but nonexcludable (fish in the ocean).
Practice
National defense is a:
Nonrival and nonexcludable.
The free-rider problem means:
Hard to charge users.
Fish in the open ocean are a:
Rival but nonexcludable.
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