Question

1. Generate the following 2x2 grids: Don’t forget to label columns/rows in your grids
   1. A grid providing an example of each a positive and negative consumption and production externality
   2. A grid identifying the good type and an example of all combinations of rival (and non) and excludable (and non) goods.

Answer 1

	Production	Consumption
Positive	Apple orchard benefitting from the bees harvested by the neighbor farmer	Your roommate cleaning the room and doing the dishes, leading to a more hygienic place
negative	A chemical factory dumping waste in the river.	Your neighbor playing loud music

	Rival	Non-Rival
Excludable	Private good(Pizza that I bought)	Club good( Music in the club)
Non-Excludable	Common pool resources( Open grazing area in farms)	Public good(Air that we breathe)