Question

An outdoor movie where the screen can be seen by people in the surrounding neighborhood

none of the above

public good

normal good

common pool resource

inferior good

common pool resource

Answer 1

Now, the outdoor movie can be seen by people in the surrounding neighborhood even though they are not paying for it. Thus, the people in the neighborhood becomes free riders, and the good becomes non-excludable as without paying to watch the film also they can watch it. Also one person watching the film does not reduce opportunity of the second person to watch the same film i.e. does not diminish other people's use. This is the property of non-rival in consumption. When a good possesses properties of non-excludablity and non-rival in consumption it is called a public good.

Option 2: Public good