**Educational Content on Common Resources vs. Private Goods****5. Common Resources versus Private Goods**Illustration Description:The illustration shows two images. On the left, people are fishing in a public area by a river. On the right, there is a sign that reads "Private Property" next to a tranquil pond in a forested area.**Text:**Spring is here, and Shen and his brother would like to go fishing for the weekend in New Hampshire. Shen could either go to the river in town where anyone can fish without a permit, or he could drive up to a pond located on his family's property to enjoy exclusive fishing. Assume that, no matter where he fishes, all the fish that are caught would be kept (that is, there is no "catch and release" policy).The fish in the private pond are considered **rival in consumption** and **excludable**, whereas the fish in the river are **rival in consumption** and **nonexcludable**. In other words, the fish in the private pond are an example of a **private good**, and the fish in the river are an example of a **common resource**.Fishing in the river will likely lead to __________ because of which of the following reasons?- All fishermen will choose to fish in the pond believing that there are more fish there.- Anyone can fish in the river because of the limited access to the pond.- Nobody will fish in the river because of the lack of private contributions to the maintenance of the river.- Anyone can fish in the river, and one person’s fishing activity decreases the ability of someone else to fish with success.**Buttons**: - Grade It Now- Save & Continue**Explanation of Concepts:**- **Rival in Consumption**: When one individual’s consumption of a good reduces its availability for others.- **Excludable**: When it’s possible to prevent someone from using the good.- **Common Resource**: Not excludable but rival in consumption.- **Private Good**: Both excludable and rival in consumption.

Private goods are rival in consumption and excludable whereas public goods are non rival as well as…

Spring is here, and Shen and his brother would like to go. fishing for the weekend in New Hampshire. Shen could either go to the river in town where anyone can fish without a permit, or he could drive up to a pond located on his family's property in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy). The fish in the private pond are considered rival in consumption a private good are of excludable whereas the fish in the river and rival in consumption and nonexcludable. In other words, the fish in the private pond are an example and the fish in the river are an example of a common resource PRIVATE PROPERTY Fishing in the river will likely lead to because of which of the following reasons? All fishermen will choose to fish in the pond believing that there are more fish there. All fishermen will choose to fish in the river because of the limited access to the pond. Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river. Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.

Spring is here, and Shen and his brother would like to go. fishing for the weekend in New Hampshire. Shen could either go to the river in town where anyone can fish without a permit, or he could drive up to a pond located on his family's property in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy). The fish in the private pond are considered rival in consumption a private good are of excludable whereas the fish in the river and rival in consumption and nonexcludable. In other words, the fish in the private pond are an example and the fish in the river are an example of a common resource PRIVATE PROPERTY Fishing in the river will likely lead to because of which of the following reasons? All fishermen will choose to fish in the pond believing that there are more fish there. All fishermen will choose to fish in the river because of the limited access to the pond. Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river. Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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