Question Completion:
Common resources versus private goods
Spring is here, and Kevin and his brother would like to go fishing for the weekend in Vermont. Kevin could either go to the river in town where anyone can fish without a permit, or he could drive up to a stream 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) PRIVATE PROPERTY The fish in the private stream are considered --------------and ----------------- whereas the fish in the river are ---------------- and -------------
In other words, the fish in the private stream are an example of ----------------? , and the fish in the river are an example of -------------. Fishing in the river will likely lead to ........................... because of which of the following reasons?
O Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.
O All fishermen will choose to fish in the river because of the limited access to the stream.
O All fishermen will choose to fish in the stream believing that there are more fish there.
O Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river.
Answer:
The fish in the private stream are considered ---excludable---and ----rivalrous-------- whereas the fish in the river are ---non-excludable----- and -----rivalrous---
In other words, the fish in the private stream are an example of ---private goods-------------? , and the fish in the river are an example of ---common goods-----. Fishing in the river will likely lead to .....rivalry.... because of which of the following reasons:
O Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.
Explanation:
Private goods are distinguishable from common and public goods because of their chief characteristics. These characteristics are Excludability, Rivalry, and Rejectability. On the other hand, public goods are characterized by non-rivalry and non-excludability. Finally, common goods are known to be rivalrous and non-excludable.
