ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Licenses to emit quantities of pollutants that can be bought and sold by polluters.
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The property of a good whereby a person can be prevented from using it.
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The property of a good whereby one person’s use diminishes other people’s use.
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A person who receives the benefit of a good but avoids paying for it.
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Detailed explanation-1: -A good is rival in consumption if one person’s use of the good reduces other people’s ability to use the same unit of the good. Markets work best for private goods, which are both excludable and rival in consumption.
Detailed explanation-2: -In economics, a good is said to be rivalrous or a rival if its consumption by one consumer prevents simultaneous consumption by other consumers, or if consumption by one party reduces the ability of another party to consume it.
Detailed explanation-3: -Rivalry in consumption is the property of a good whereby one person’s use diminishes other people’s use.
Detailed explanation-4: -A good is rival in consumption if it cannot be consumed by more than one person at the same time. the supplier cannot prevent consumption by people who do not pay for it. if more than one person can consume the same unit of the good at the same time.
Detailed explanation-5: -Most goods can only be consumed by one person, or by one person at a time. Economists call such goods rival because consumption of them is competitive in a sense. A typical rival good might be pizza–although several people can share a pizza, each individual bite can only be eaten by one person.