A Good Is Nonexcludable If It Is

question 177

Multiple Choice

A good is nonexcludable if it is:

• A) easy to prevent people from using the good at low cost.
• B) easy to make people use the good at low cost.
• C) difficult to prevent people from using the good at low cost.
• D) difficult to make people use the good at low cost.

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Definitions:

No-International-Trade Price

The price level of goods within a country in the absence of international trade, often influenced solely by domestic supply and demand.

Export Supply Curve

A graphical representation showing the relationship between the price of a good on the international market and the quantity that domestic producers are willing to export.

Import Demand Curve

A graph showing the relationship between the price of an imported good and the quantity of the good that consumers in the importing country are willing to buy.

Equilibrium World Price

The price at which the supply of a good on a global scale exactly matches the world demand for that good.