Question

Use the following classification to determine which category each of the following goods falls into:

Private Good Club Good Common Resource Public Good1. Museums that require admission fee2. Snow plowing of public streets immediately after a heavy snowfall3. Education in a congested classroom4. Flood control5. Congested city streets

Answer 1

Answer: 1. Club goods

2. Public goods

3. Common Resources

4. Public goods

5. Common Resources

Step-by-step explanation:

The four categorization of goods stems from the basis of rivalrousness and excludability. Excludability implies that the consumers in some way can be denied access to the goods. Rivalrousness implies that the consumer's ability to access the goods would not affect its availability to other consumers.

Therefore,

1. Museums that require admission fee is a Club good because it is excludable and non-rivalrous.

2. Snowplowing of streets Immediately after a heavy snowfall is a public good because it is non-excludable and non-rivalrous.

3. Education in a congested classroom is a Common resource because it is rivalrous and non-excludable.

4. Flood control is a Public good because it is non-exclusive and non-rivalrous.

5. Congested cities are Common resources that are rivalrous and non-excludable.