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3. Indicate whether the following are private goods, club goods, common-resource goods, or public goods: a. A bacon double cheeseburger b. An NHL hockey game between the Detroit Red Wings and Boston Bruins c. A Fourth of July fireworks show d. A swimming pool

3. Indicate whether the following are private goods, club goods, common-resource goods, or public goods: a. A bacon double cheeseburger b. An NHL hockey game between the Detroit Red Wings and Boston Bruins c. A Fourth of July fireworks show d. A swimming pool

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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### Understanding Types of Goods **3. Indicate whether the following are private goods, club goods, common-resource goods, or public goods:** a. **A bacon double cheeseburger** A bacon double cheeseburger is a **private good**. It is excludable (you have to purchase it to consume it) and rivalrous (if one person eats it, another cannot). b. **An NHL hockey game between the Detroit Red Wings and Boston Bruins** This is considered a **club good**. It is excludable (only ticket holders can watch) but non-rivalrous up to a point (one person's enjoyment does not reduce another's, barring full capacity). c. **A Fourth of July fireworks show** A fireworks show is a **public good**. It is non-excludable (anyone can watch) and non-rivalrous (one person's enjoyment does not reduce availability to others). d. **A swimming pool** A swimming pool can be categorized as a **club good** if access is controlled (e.g., membership required). Otherwise, it may become a **common-resource good** if it is open to the public and becomes overcrowded. e. **A vaccination for the flu** Vaccinations are generally regarded as **private goods**. They are excludable (one must receive the vaccine) and rivalrous to an extent (limited resources impact the availability). f. **Streetlights** Streetlights are a classic example of **public goods**. They are non-excludable (everyone benefits from the light) and non-rivalrous (one person's use does not diminish another's).
Transcribed Image Text:### Understanding Types of Goods **3. Indicate whether the following are private goods, club goods, common-resource goods, or public goods:** a. **A bacon double cheeseburger** A bacon double cheeseburger is a **private good**. It is excludable (you have to purchase it to consume it) and rivalrous (if one person eats it, another cannot). b. **An NHL hockey game between the Detroit Red Wings and Boston Bruins** This is considered a **club good**. It is excludable (only ticket holders can watch) but non-rivalrous up to a point (one person's enjoyment does not reduce another's, barring full capacity). c. **A Fourth of July fireworks show** A fireworks show is a **public good**. It is non-excludable (anyone can watch) and non-rivalrous (one person's enjoyment does not reduce availability to others). d. **A swimming pool** A swimming pool can be categorized as a **club good** if access is controlled (e.g., membership required). Otherwise, it may become a **common-resource good** if it is open to the public and becomes overcrowded. e. **A vaccination for the flu** Vaccinations are generally regarded as **private goods**. They are excludable (one must receive the vaccine) and rivalrous to an extent (limited resources impact the availability). f. **Streetlights** Streetlights are a classic example of **public goods**. They are non-excludable (everyone benefits from the light) and non-rivalrous (one person's use does not diminish another's).
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Step 1

Introduction 

Private goods - Private Goods are products that are excludable and rival. 

Public goods - Public goods are products that are non-excludable and non-rival. 

Club goods - club goods are products that are excludable but non-rival.

Common resources goods - Common resources are products or resources that are non-excludable but rival.

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