Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 5, Problem 5.4.1RQ
To determine

The rivalry and excludability and four categories of goods.

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Explain what is meant by a good being "excludable."  Explain what is meant by a good being "rival in consumption."  Is a slice of pizza excludable?  Is it rival in consumption?
What is an externality in economics? Explain how a neighbor’s barking dog could be both a positive and a negative externality.   Can pollution ever make us better off? How do we know? Should we aim to eliminate all pollution? If not, what should our goal be? Defend your answer.   When thinking about types of goods, what does rivalry mean? What does excludability mean? What are the four categories of goods we can identify using those attributes, and what is an example of a good in each category?
Which of the following illustrates the concept of externalaties?       A. A hurricane destroys a production plant causing the owner of the plant to spend more money rebuilding               B. Pollution by a coal mining plant causes a farmer to spend more money on fertilizer to improve his crop     C. Increase in the price of sugar raises the price paid by consumers of  soda, thereby disadvantaging these consumers   D. Smoking harms the health of the smoker
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