Answer to Question #259501 in Microeconomics for Jonny

Question

a. Categorize each good or service as excludable or nonexcludable. 

b. Categorize each good or service as rival or nonrival.

Answer 1

(I)Excludable goods or service are private goods or services that can exclude a certain person or group of persons from using such goods or services while Non-excludable goods refer to public goods or services that cannot exclude a certain person or group of persons from using such goods.

A typical example of an excludable good or service is buying petrol and putting it into the fuel tank because it affects the supply available for other consumers.

A typical example of a non excudable good is a lighthouse which acts as a navigation aid to ships at sea and any ship out at sea can benefit from it.

(II)A rival good is something that can only be possessed or consumed by a single user while non-rival good is one that can be consumed or possessed by multiple users.

A typical rival good might be pizza. Although several people can share a pizza, each individual bite can only be eaten by one person.

A typical non rival might be a national park. Provided people don't litter or tear up the park, one person's use of it doesn't diminish the ability of other people to use it.