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Karen Knows That Her Neighbors Often Struggle to Make Ends

question 5

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Karen knows that her neighbors often struggle to make ends meet.She sometimes offers to babysit for free because she can easily afford to do so and feels good that she can help in this small way.This example most clearly illustrates the


Definitions:

Rival

An entity engaged in competition for the same objective or for superiority in the same field.

Public Good

Goods that are non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Nonexcludable

Nonexcludable goods are those that cannot feasibly or reasonably be kept from individuals who do not pay for them, one of the characteristics of public goods.

Nonrival

A characteristic of a good whereby one person's consumption does not prevent or decrease the ability of others to enjoy it as well.

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