Rival and Non-rival goods: If a good or service consumed by a person alone at a time and its consumption is prevented from the other persons at that point of time then this kind of good is known as a rival good. If a good or service consumed by a person alone and its consumption is not prevented from the other persons at that point of time then this kind of good is known as a non-rival good. Generally, private goods are treated as rival goods and public goods are treated as non-rival goods. Deadweight loss : It is the loss which is seen when there is any kind of distortion or unbalance in the market, this loss is the loss to the economic efficacy of the economy. Excludable and Non-Excludable goods: If people are prevented from the use of the good they have not paid for, then such goods are treated as excludable goods, whereas if people cannot be prevented from the use of the good they have not paid for, then such goods are treated as non-excludable goods. Free rider: It is the problem which can result in market failure, this problem arises, when people try to take advantage of a public good without paying anything for it.

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Chapter 17, Problem 11P

To determine

Concept Introduction:

Rival and Non-rival goods: If a good or service consumed by a person alone at a time and its consumption is prevented from the other persons at that point of time then this kind of good is known as a rival good.

If a good or service consumed by a person alone and its consumption is not prevented from the other persons at that point of time then this kind of good is known as a non-rival good. Generally, private goods are treated as rival goods and public goods are treated as non-rival goods.

Deadweight loss: It is the loss which is seen when there is any kind of distortion or unbalance in the market, this loss is the loss to the economic efficacy of the economy.

Excludable and Non-Excludable goods: If people are prevented from the use of the good they have not paid for, then such goods are treated as excludable goods, whereas if people cannot be prevented from the use of the good they have not paid for, then such goods are treated as non-excludable goods.

Free rider: It is the problem which can result in market failure, this problem arises, when people try to take advantage of a public good without paying anything for it.

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