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For each of the goods below, identify the characteristics that describe each good. Note that each good will be characterized with two characteristics. Rivalrous is also referred to as rival in consumption. Consider only the immediate benefits and costs, not any externalities.

National Defense Excludable
Pay per view cable TV Nonexcludable
A Hot Pocket sandwich Rivalrous
Private classroom education Npnrivalrous
Pajamas
A unicycle

User Smolla
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Final answer:

Goods are characterized as rivalrous or non-rivalrous and excludable or non-excludable. A Hot Pocket sandwich is rivalrous and excludable, national defense is non-rivalrous and non-excludable, and classroom education is typically excludable and can be either rivalrous or non-rivalrous. Pajamas and a unicycle are both rivalrous and excludable.

Step-by-step explanation:

In economics, goods can be classified along two main characteristics: rivalrous (or rival) and excludable.

Rivalrous goods are those that cannot be enjoyed by more than one person at a time without diminishing the supply. For example, a Hot Pocket sandwich is rivalrous because once someone consumes it, it's gone, and no one else can consume that same sandwich.

Excludable goods are those from which it is possible to prevent people from benefiting. For example, Pay per view cable TV is excludable because the provider can restrict access to those who have not paid for the service.

Non-rivalrous goods can be used by one person without preventing simultaneous use by others. National Defense is a classic example of a non-rivalrous good since one person's use does not diminish availability to others.

Non-excludable goods are available to all and cannot effectively exclude anyone from using them. Again, National Defense is non-excludable because it protects all citizens regardless of whether an individual has contributed to its provision.

Private classroom education is typically excludable, as only paying students can attend the classes. However, it can be either rivalrous or non-rivalrous, depending on the context. If the class size is limited and additional students are excluded from enrolling because the class is full, it is rivalrous. But if the class can accommodate more students without affecting the educational experience, it is non-rivalrous. For this example, if the class size is indeed limited, making it so one student's enrollment prevents another from joining, it will be rivalrous and excludable.

Items like pajamas and a unicycle are both rivalrous (since only one person can use them at a time) and excludable (owners can prevent others from using them).

User Kitet
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Answer:

  • National Defense - Non excludable - National Defense is a public good, and all citizens in a country are entitled to enjoy that good, whether they pay for it or not.
  • Pay per view - Excludable - This is a private service. Only people who pay for it are allow to enjoy this good.
  • A Hot Pocket sandwich - Rivalrous - This is a good that is used up by the consumption of one person. One it is consumed, it cannot be enjoyed by anyone else.
  • Private classroom - Excludable - This is also a private service. Only alumni who pay can enter this classroom.
  • Pajamas - Rivalrous good - A pajamas cannot be used by more than one person at the same time.
  • A Unicycle - Rivalrous good - Same logic as above. A unicycle can only be used by one person at a time.

User Moiz Raja
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