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Four Types of Goods and Two Characteristics quiz #1

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Terms in this set (24)

  • Which phrase best defines complementary goods in microeconomics?
    Complementary goods are products that are typically consumed together, so an increase in the price of one leads to a decrease in demand for the other.
  • What is an example of a good in microeconomics?
    A cheeseburger is an example of a good; it is a tangible item that satisfies human wants.
  • What is the difference between a good and a service in economics?
    A good is a tangible item that can be owned and consumed, while a service is an intangible activity performed for someone else.
  • What are substitute goods?
    Substitute goods are products that can replace each other in consumption, such as butter and margarine.
  • What is an example of a toll good in economics?
    An uncongested toll road is an example of a toll good (club good), as it is excludable but non-rival.
  • What is a nondurable good?
    A nondurable good is a product that is consumed quickly or has a short lifespan, such as fresh fruit or newspapers.
  • What are the two characteristics that differentiate private goods from public goods?
    Private goods are both rival in consumption and excludable, while public goods are non-rival and non-excludable.
  • Which of these is considered a durable good?
    A television is considered a durable good because it lasts for a long period and can be used repeatedly.
  • What type of good is both rival and excludable?
    A cheeseburger is both rival and excludable, making it a private good.
  • Which type of economic good can be categorized as rivalrous and non-excludable?
    Common resources are rivalrous and non-excludable, such as fish in the ocean.
  • What is an example of a rivalrous private good?
    A pair of jeans is a rivalrous private good because only one person can use it at a time and it is excludable.
  • What characteristic is not associated with a public good?
    Excludability is not a characteristic of a public good; public goods are non-excludable.
  • How is an excludable good defined?
    An excludable good is one where people can be prevented from using it, usually by requiring payment.
  • Coffee pots and televisions would be classified as what type of goods?
    Coffee pots and televisions are private goods because they are both rival and excludable.
  • Which of these is the best example of a nondurable good?
    Fresh fruit is the best example of a nondurable good because it is consumed quickly and does not last long.
  • What is an example of a nonrival good?
    National defense is a nonrival good because one person's use does not diminish another's ability to use it.
  • What is an example of a pure private good?
    A cheeseburger is an example of a pure private good, being both rival and excludable.
  • A rental car company buys 30 new automobiles. The automobiles are examples of what type of goods?
    The automobiles are examples of durable private goods.
  • What is an example of a rivalrous private good?
    A house is a rivalrous private good because only one family can live in it at a time and it is excludable.
  • Classify each of the following food goods according to whether it is rivalrous.
    Food goods such as cheeseburgers and fresh fruit are rivalrous because consumption by one person prevents consumption by another.
  • What is an example of a durable good?
    A pair of jeans is an example of a durable good because it can be used repeatedly over time.
  • Dairy items, fresh fruit, and newspapers are items that are best classified as what type of goods?
    Dairy items, fresh fruit, and newspapers are nondurable goods because they are consumed quickly.
  • An audiobook is an example of a club good because it is what?
    An audiobook is a club good because it is excludable (requires payment) but non-rival (many can listen without affecting others).
  • Unlike a private good, a public good is characterized by what?
    A public good is characterized by being non-rival and non-excludable, unlike a private good.