(a)
To indicate:
Whether the given goods arenonrival and/or nonexclusiveand also indicate whether it is a private, public, common or clubgoods.
Answer to Problem 3P
Hot dogs are considered asrival and exclusive goods. Due to its nature of rival and exclusivity, they are considered as private goods.
Explanation of Solution
Since, hot dog can be eaten by only one person at a time, and it is required to be purchased before consuming.Therefore, itcomesunder the category of private goods.
Public goods:
Public goods are considered as nonrival and nonexclusive goods. It can be used by anyone without paying anything in return. Thesegoods are used by one person at a time and does not reduce the availability of the same goods fr other. It can be consumed simultaneously by more than one person.
Private goods:
The private goodsare rival and exclusivegoods. The person who pays for those goods can use them. No two persons can simultaneously use it.
(b)
To indicate:
Whether the given good is nonrival and/or nonexclusive and also to indicate whether it is a private, public, common or clubgoods.
Answer to Problem 3P
Cable TV is considered as non-rival but notnon-exclusive goods. Hence, it will be considered as private goods.
Explanation of Solution
Since the cable TV can be watched by only who pays for it, it becomes exclusive.Though it can be used by one or more person without affecting the view of others. Therefore, it comes under the category of private goods.
Public goods:
Public goods are considered as nonrival and nonexclusive goods. It can be used by anyone without paying anything in return. These goods are used by one person at a time and does not reduce the availability of the same goods for other. It can be consumed simultaneously by more than one person.
Private goods:
The private goods are rival and exclusive goods. The person who pays for those goods can use them. No two persons can simultaneously use it.
(c)
To indicate:
Whether the given goodsis nonrival and/or nonexclusive, also indicate whether it is a private, public, common or clubgoods.
Answer to Problem 3P
Broadcast TV is considered as non-rival and non-exclusivegoods. It is considered as public goods.
Explanation of Solution
Since, the broadcast TV is available to anyone who has a television set, and the consumers do not have to pay for it, it is considered as non-exclusive goods.Also, watching by one individual will not affect the consumption of others, hence it is non-rival. Therefore, it comes underthe category of public goods.
Public goods:
Public goods are considered as nonrival and nonexclusive goods. It can be used by anyone without paying anything in return. These goods are used by one person at a time and does not reduce the availability of the same goods for other. It can be consumed simultaneously by more than one person.
Private goods:
The private goods are rival and exclusive goods. The person who pays for those goods can use them. No two persons can simultaneously use it.
(d)
To indicate:
Whether the given goodsis nonrival and/or nonexclusive, also indicate whether it is a private, public, common or clubgoods.
Answer to Problem 3P
Automobilesare considered as rival and exclusivegoods.It is considered as private goods.
Explanation of Solution
A person who owes the automobile by paying amount for the product, can only drive it. The ownership lies with the person who has paid for it.Also, it can be used by a single person at the same time. Therefore, automobile is rival and exclusive in nature and hence it comes under the category of private goods.
Public goods:
Public goods are considered as nonrival and nonexclusive goods. It can be used by anyone without paying anything in return. These goods are used by one person at a time and does not reduce the availability of the same goods for other. It can be consumed simultaneously by more than one person.
Private goods:
The private goods are rival and exclusive goods. The person who pays for those goods can use them. No two persons can simultaneously use it.
(e)
To indicate:
Whether the given goodsis nonrival and/or nonexclusive, also indicate whether it is a private, public, common or clubgoods.
Answer to Problem 3P
National defence is considered as non-rival and non-exclusivegoods. It is considered as public goods.
Explanation of Solution
Since the benefits of the national defence are taken by everyone as it is for the benefit of the country. People do not need to pay any amount for having the facility. All the citizens of the country are entitled to enjoy the benefits of the national defence. Therefore, it becomesnon-rival, non-exclusive goods. As it is non-rival and non-exclusive it comes underthe category of public goods.
Public goods:
Public goods are considered as nonrival and nonexclusive goods. It can be used by anyone without paying anything in return. These goods are used by one person at a time and does not reduce the availability of the same goods for other. It can be consumed simultaneously by more than one person.
Private goods:
The private goods are rival and exclusive goods. The person who pays for those goods can use them. No two persons can simultaneously use it.
(f)
To indicate:
Whether the given goodsis nonrival and/or nonexclusive, also indicate whether it is a private, public, common or clubgoods.
Answer to Problem 3P
Pollution control is considered as non-rival and non-exclusive goods.It is considered as public goods.
Explanation of Solution
Since, the control of pollution is made by the government authority or by any third party. The reduction in level of pollution is for the environment overall and for everybody. Even if the other individuals participate or not into it, they are benefitted from it.Thus,it becomes non-rival, non-exclusive.As it is non-rival and non-exclusive it comes underthe category of public goods.
Public goods:
Public goods are considered as nonrival and nonexclusive goods. It can be used by anyone without paying anything in return. These goods are used by one person at a time and does not reduce the availability of the same goods for other. It can be consumed simultaneously by more than one person.
Private goods:
The private goods are rival and exclusive goods. The person who pays for those goods can use them. No two persons can simultaneously use it.
(g)
To indicate:
Whether the given goodsis nonrival and/or nonexclusive, also indicate whether it is a private, public, common or clubgoods.
Answer to Problem 3P
Parking in a parking structure is not considered as non-rival and non-exclusivegoods.It is considered as private goods.
Explanation of Solution
Since to park an automobile in the parking structure is not for free, and one mustpay to park their automobile; thus, it isexclusive goods.Also, once the parking spot is taken by one car, no other car can be parked at the same time, hence it becomes rival goods.
As parking in a parking structure is rival and exclusive; it falls in the category of private goods.
Public goods:
Public goods are considered as nonrival and nonexclusive goods. It can be used by anyone without paying anything in return. These goods are used by one person at a time and does not reduce the availability of the same goods for other. It can be consumed simultaneously by more than one person.
Private goods:
The private goods are rival and exclusive goods. The person who pays for those goods can use them. No two persons can simultaneously use it.
(h)
To indicate:
Whether the given goodsis nonrival and/or nonexclusive, also indicate whether it is a private, public, common or clubgoods.
Answer to Problem 3P
A sunset is considered as non-rival and non-exclusivegoods.It is considered as public goods.
Explanation of Solution
Since the beauty of the sunset can be enjoyed by everyone without paying anything in return.Also, watching the sunset by one will not affect the others; therefore, it is non-rival and non-exclusive. Hence, it falls in the category of public goods.
Public goods:
Public goods are considered as nonrival and nonexclusive goods. It can be used by anyone without paying anything in return. These goods are used by one person at a time and does not reduce the availability of the same goods for other. It can be consumed simultaneously by more than one person.
Private goods:
The private goods are rival and exclusive goods. The person who pays for those goods can use them. No two persons can simultaneously use it.
(i)
To indicate:
Whether the given goodsis nonrival and/or nonexclusive, also indicate whether it is a private, public, common or clubgoods.
Answer to Problem 3P
Admission to the theme park is considered as non-rival and non-exclusive goods.It is considered as private goods.
Explanation of Solution
Since, admission in the theme park would be possible only by buying tickets, hence it is exclusive.With one ticket, only one person will be allowed to enter the park, which makes it rival goods. Therefore, it comes under the category of private goods.
Public goods:
Public goods are considered as nonrival and nonexclusive goods. It can be used by anyone without paying anything in return. These goods are used by one person at a time and does not reduce the availability of the same goods for other. It can be consumed simultaneously by more than one person.
Private goods:
The private goods are rival and exclusive goods. The person who pays for those goods can use them. No two persons can simultaneously use it.
Want to see more full solutions like this?
- 1. Repeated rounds of negotiation exacerbate the incentive to free-ride that exists for nations considering the ratification of international environmental agreements.arrow_forwardFor environmental Economics, A-C Pleasearrow_forwardTrue/ False/ Undetermined - Environmental Economics 3. When the MAC is known but there is uncertainty about the MDF, an emissions quota leads to a lower deadweight loss associated with this uncertainty.arrow_forward
- True/False/U- Environmental Economics 2. The discount rate used in climate integrated assessment models is the key driver of the intensity of emissions reductions associated with optimal climate policy in the model.arrow_forwardAt the beginning of the year, the market for portable electric fans was in equilibrium. In June, a summer heat wave hit. What effect does the heat wave have on the market for fans? Drag the appropriate part(s) of the graph to show the effect on the market for portable fans. To refer to the graphing tutorial for this question type, please click here. Price 17 OF 21 QUESTIONS COMPLETED f4 Q Search f5 f6 f7 CO hp fg 6 M366 W ins f12 f11 f10 SUBMIT ANSWER ENG 4xarrow_forwardIn the context of investment risk, what does "diversification" mean? A) Spreading investments across various assets to reduce riskB) Investing in a single asset to maximize returnsC) Increasing investment in high-risk assetsD) Reducing the number of investments to focus on high-performing onesarrow_forward
- At the 8:10 café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (that is she cannot price discriminate). Students with early classes Students without early classes Coffee 70 60 Banana 50 100 The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately? If so, what price should be charged for the bundle? (Show calculations)arrow_forwardYour marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Use the following demand data: Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40%arrow_forwardYour marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40% ur marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.arrow_forward
- Test Preparation QUESTION 2 [20] 2.1 Body Mass Index (BMI) is a summary measure of relative health. It is calculated by dividing an individual's weight (in kilograms) by the square of their height (in meters). A small sample was drawn from the population of UWC students to determine the effect of exercise on BMI score. Given the following table, find the constant and slope parameters of the sample regression function of BMI = f(Weekly exercise hours). Interpret the two estimated parameter values. X (Weekly exercise hours) Y (Body-Mass index) QUESTION 3 2 4 6 8 10 12 41 38 33 27 23 19 Derek investigates the relationship between the days (per year) absent from work (ABSENT) and the number of years taken for the worker to be promoted (PROMOTION). He interviewed a sample of 22 employees in Cape Town to obtain information on ABSENT (X) and PROMOTION (Y), and derived the following: ΣΧ ΣΥ 341 ΣΧΥ 176 ΣΧ 1187 1012 3.1 By using the OLS method, prove that the constant and slope parameters of the…arrow_forwardQUESTION 2 2.1 [30] Mariana, a researcher at the World Health Organisation (WHO), collects information on weekly study hours (HOURS) and blood pressure level when writing a test (BLOOD) from a sample of university students across the country, before running the regression BLOOD = f(STUDY). She collects data from 5 students as listed below: X (STUDY) 2 Y (BLOOD) 4 6 8 10 141 138 133 127 123 2.1.1 By using the OLS method and the information above derive the values for parameters B1 and B2. 2.1.2 Derive the RSS (sum of squares for the residuals). 2.1.3 Hence, calculate ô 2.2 2.3 (6) (3) Further, she replicates her study and collects data from 122 students from a rival university. She derives the residuals followed by computing skewness (S) equals -1.25 and kurtosis (K) equals 8.25 for the rival university data. Conduct the Jacque-Bera test of normality at a = 0.05. (5) Upon tasked with deriving estimates of ẞ1, B2, 82 and the standard errors (SE) of ẞ1 and B₂ for the replicated data.…arrow_forwardIf you were put in charge of ensuring that the mining industry in canada becomes more sustainable over the course of the next decade (2025-2035), how would you approach this? Come up with (at least) one resolution for each of the 4 major types of conflict: social, environmental, economic, and politicalarrow_forward
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
