Question

Determine whether each of the following goods is a private good, a public good, a common resource, or a club good. Private Good Public Good Common Resource Club Good A treadmill in a fitness room that is open to the public A new drone that you take turns flying with your friends A large, beautiful clock in a park

Answer 1

Answer:

The correct answers are:

A) Common resource

B) Private good

C) Public good

Explanation:

A) Common resources are natural sources, goods or services that provide tangible benefits. In the example, even if the treadmill is inside a fitness room that is open to the public, it is not a public good itself because the treadmill can be used only once at the time.

B) Private goods are those that someone can claim for ownership. In the case, the new drone is only being lent by one person so the others take turns to use it but, it belongs to that very same person.

C) Public goods can be consumed by an individual without the need of taking away others the possibility of using them at the same time. The clock in the park can be freely used by anybody -at any moment- who is around that place.