Question

What kind of good is it? Determine whether each of the following goods is a private good, a public good, a common resource, or a club good.
a. Private GoodPublic GoodCommon ResourceClub Good
b. A cabana along a beach that is open to the public
c. A new BMW that you use to drive your friends around town
d. A large, beautiful fountain in a park

Answer 1

Answer:

b. Public good

c. Private good

d. Public good

Explanation:

Private goods are those kind of goods, which has the characteristics of rivalrous as well as excludability.

Club goods are those kind of goods which are excludable but are not rival.

Common resources are those kinds of goods which are not excludable but are rival in nature.

Public goods are those goods which are for the public to use.

So, classifying the above points into the same as:

b. Cabana which is near a beach, is open for public - It is a public good as it is open for public.

c. BMW, which the person use to drive his or her friends - It is a private good, as the person purchased himself, so its the person choice to ride his or her friends.

d. Fountain in a park - Park is made for the public and fountain in the park is for public as well.