A Good That Can Be Consumed Even If the Consumer

question 73

Multiple Choice

A good that can be consumed even if the consumer does not pay for it

• A) is necessarily rival in consumption.
• B) completely avoids the free rider problem.
• C) does not exist because firms won't produce goods for which consumers won't pay.
• D) is nonexcludable.
• E) might be nonexcludable but is definitely nonrival.

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Definitions:

Habituation

The decreasing response to a stimulus with repeated exposure, leading to less attention or reaction to that stimulus over time.

Ingestional Neophobia

The avoidance of novel foods.

Dishabituation

The recovery of a habituated response as the result of the presentation of a sensitizing stimulus

Sensitization

An increased reaction to a stimulus following repeated exposure, particularly to something intense or adverse.