Question

4) Public goods are: Rival and excludable Non-rival and excludable Rival and non-excludable Non-rival and non-excludable 5) Collective goods are: Rival and excludable Non-rival and excludable Rival and non-excludable Non-rival and non-excludable 6) What kind of goods are your Netflix and Spotify accounts considered? Private goods Public goods Collective goods Common goods

Answer 1

4. The correct answer id D.

Public goods are those goods which can be used by many people simultaneously and their use by one doesnt exclude or minimize anyone else's use (non-rival). Also, no one can be stopped from using them by virtue of not paying (non-excludable). Hence, public goods are both.

5. The correct answer is B.

Collective goods are which can be used by multiple people simultaneously and their use by one doesnt exclude or minimize anyone else's use (non-rival), but they need to paid for use first (excludable).

6. The correct answer is C.

As described in answer 5, since Netflix and Spotify can be used by multiple people without it affecting anyone else's use, they are non-rival. But since we need to pay for them they are excludable. This makes them collective goods.