ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Common resources are non-excludable goods, which means that no one can be prevented from using them. They are also considered rival in consumption, meaning if it is used by one party, another cannot use them.

Detailed explanation-2: -Common goods are non-excludable and rival. Examples of common goods are coal and timber because they can only be possessed or consumed by a single user at one time but access is not restricted.

Detailed explanation-3: -A good is excludable if people (ordinarily, people who have not paid for it) can be prevented from using it. It is rival, or subtractable if one person’s consumption of a good necessarily diminishes another person’s consumption of it.

Detailed explanation-4: -While non-excludable goods are free for the use of everyone, making them public, rivalrous goods are private goods wherein people may compete for their consumption of it. For example, a person who buys a car can only use it for himself and restrict others from using it.

Detailed explanation-5: -A common resource is an non-excludable but rival good; that is, a good that people cannot be prevented from using but where one person’s consumption of the good diminishes another person’s consumption of it. See Non-excludable Good and Rival Good.