ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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National defense
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Light from the lighthouse
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Basic Research
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Cable
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Detailed explanation-1: -A common resource is a good that is nonexcludable but is rival in consumption. An example is the stock of fish in a limited fishing area, like the fisheries off the coast of New England. Traditionally, anyone who had a boat could go out to sea and catch fish-fish in the sea were a nonexcludable good.
Detailed explanation-2: -Forests, water, atmosphere, irrigation systems, and fishing grounds are good examples of common resources.
Detailed explanation-3: -Examples of common-pool resources include forests, man-made irrigation systems, fishing grounds, and groundwater basins.
Detailed explanation-4: -Examples of public goods include law enforcement, national defense, and the rule of law. Public goods also refer to more basic goods, such as access to clean air and drinking water.