Recommended
More Related Content
Similar to Macro 18
Similar to Macro 18 (20)
More from Gale Pooley
More from Gale Pooley (20)
Recently uploaded
Recently uploaded (20)
Macro 18
- 2. Macroeconomics Lecture 18 Light Four Types of Goods Five Ages
- 3. Questions
- 4. New Capital Human Physical Intellectual Financial Cultural Price Level Quantity of Output LRAS1 Y1 LRAS2 Y3 LRAS3 Y3 P1 P2 P3 Aggregate Demand Fiscal & Monetary Aggregate Supply Innovation
- 5. Four Types of Goods Private Goods Public Goods Common Resources Club Goods
- 6. Some goods do not have prices How much should we produce? Government policy
- 7. Private Goods Goods that are excludable and rival in consumption. Can exclude others If I consume, you cannot
- 8. Excludable Can people be prevented from using the good? Yes No
- 9. Rivalry in Consumption Can one personβs use of a good reduce others use? Can two people consume at the same time without reducing?
- 10. Exclude others When I consume it diminishes
- 11. Public Goods Goods that are neither excludable nor rival in consumption. Cannot exclude Everyone can consume without reducing amount
- 13. Free Rider a person who receives a beneο¬t but does not pay for it
- 14. National Defense
- 16. Common Resources Goods that rival in consumption but are not excludable Cannot exclude others If I consume, you cannot
- 17. Common Resource Drink as fast as possible before it runs out
- 18. Private Good Each person has his own cup
- 19. Which method will incentivize people to not waste the resource? Share one cup Each person gets their own cup
- 26. Tragedy of the Commons If everyone owns it, no one owns it Privatize the commons
- 31. Property Rights Reduce contention Create wealth
- 32. Club Goods Goods that are excludable but not rival in consumption Can exclude others Everyone can consume without reducing amount
- 33. Rival in Consumption? Yes No Yes No Excludable? Private Goods Common Resources Club Goods Public Goods Snickers Bar Car Pizza Satellite TV Paintings Fireworks National DefenseFish in Ocean Air Is it reduced when one person consumes? Can people be prevented from consuming?
- 34. Born to Choose Middle English chosen, from Old English ceosan; akin to Old High German kiosan to choose, Latin gustare to taste.
- 35. Asset Value toYou Capital Value to Others
- 36. Assets Capital