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There are 4 types of goods in economics, which are defined based on excludability and rivalrousness in consumption. This means we categorise goods depending on whether people can be prevented from consuming them (excludability) and whether they can be consumed by individuals without affecting their availability to other individuals (rivalrousness). Based on those 2 criteria, we can classify all physical products into 4 different types of goods…

Work in pairs to complete this investigation. Identify as many goods and services that governments provide in your local area as you can. Develop a list of the public goods and merit goods you use, both regularly and infrequently. Using examples from your local community, describe the characteristics of a public good. Explain how these characteristics lead to the free-rider Explain why the merit goods you identified in your local area are…

As you read, highlight terms you do not understand. Reasons for and methods of protection To support domestic businesses to become more competitive, governments often impose limits on trade, or ‘protect’ Australian businesses. The ways that governments affect trade include: regulations that control standards of imported goods embargoes that ban the import of particular goods tariffs on imported goods subsidies for local businesses…

Image: Three quadrants on a page divided by a Y-shape. The top section of the Y is for recording what something ‘looks like’. The right-side of the Y is for recording what something ‘feels like’. The left-hand side of the way is for recording what something ‘sounds like’.  

Keep your score for each round of the game. $4.00 for each red card kept. $1.00 for each card in the common resource pool. Round Number of red cards kept by you Earnings for red cards kept by you Number of red cards in the community pool Earning from red cards in the community pool Total earnings for this round Cumulative earnings 1…

Read the rules of the game and how to play it. Rules of the game You will play your cards throughout the game. You have 4 cards: 2 red cards and 2 black cards. The black cards do not earn any money. The red cards you give to the teacher contribute to the provision of public goods that everyone will benefit from. For each red card you keep, you will earn $4.00. You will also earn $1.00 for each red card that all students added to the…

What are the effects of imposing a tariff on a particular good that is both produced domestically and imported? Indicate the effects of a tariff on the market and on economic wellbeing on the following diagram. Use an upward arrow ↑ to indicate an increase or a downward arrow ↓ to indicate a decrease or a cross X to indicate no effect for each economic variable. Table 1: The effect of imposing tariffs on imported goods that are…

What are externalities and what forms of government intervention might help to correct the market failure from externalities? Externalities and ways of managing them In many situations the market fails to capture the external impacts of a transaction. These impacts can be benefits or costs. These side-effects of economic activity can be: the result of production or consumption a benefit (a positive) or a cost (a negative). These side effects…