Economics 1021A/B Lecture Notes - Lecture 24: Deadweight Loss, Air Traffic Control, Overfishing

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Nicholas Kahnert

Document Summary

Classifying foods and resources goods, services, and resources differ because people can be excluded from consuming them and one person"s consumption rivals the consumption of others. Excludable: if its possible to prevent someone from enjoying benefits ex. concerts: must pay to consume them. Non-excludable: impossible to prevent anyone from benefiting from it ex. anyone with a boat can fish. Rival: one person"s use of it decreases the quantity available for someone else ex. a fish can be consumed only one. Non-rival: if one person"s use of it does not decrease quantity available for someone else ex. services of the police and a concert. Technology allows things to be excludable (gps allow roads to be excludable) Public good: both non-rival and non-excludable can be consumed simultaneously by everyone, no one can be excluded from enjoying benefits ex. Common resources: rival and non-excludable use only once, but no one can be prevented from using what is available ex.