Title: QUIZ: Public Goods -- Economic Lowdown Audio Series
Course: Recommended Resources for AP Micro from FRE > Section: Unit 6: Market Failure and the Role of Government

Q: What are private goods?
- Goods that are excludable and rival
- Goods that are non-excludable and rival
- Goods that are excludable and non-rival
- Goods that are non-excludable and non-rival
A: Goods that are excludable and rival

Q: What are public goods?
- Goods that are excludable and rival
- Goods that are non-excludable and rival
- Goods that are excludable and non-rival
- Goods that are non-excludable and non-rival
A: Goods that are non-excludable and non-rival

Q: What does it mean if a good is non-excludable?
- The consumer can prevent those who don’t pay for it from consuming or using it.
- The supplier of the good cannot prevent those who don’t pay for it from consuming or using it.
- The good is automatically a private good.
- The good is automatically a public good.
A: The supplier of the good cannot prevent those who don’t pay for it from consuming or using it.

Q: What does it mean if a good is non-rival?
- One person’s consumption does not hinder anyone else’s consumption of the good.
- One person’s consumption hinders someone else’s consumption of the good.
- The good is automatically a private good.
- The good is automatically a public good.
A: One person’s consumption does not hinder anyone else’s consumption of the good.

Q: What are free riders?
- A person who pays the cost of a public good, but does not consume it
- A person who does not produce private goods, but consumes them anyway
- A person who receives the benefits of a public good, but avoids paying for it
- A person who frequently earns a consumer surplus in the marketplace
A: A person who receives the benefits of a public good, but avoids paying for it

Q: What is market failure?
- When a private market fails to produce a good at the level society wants, or doesn't produce it at all
- When a public market fails to produce a good at the level society wants, or doesn't produce it at all
- When a private market produces a good at the level society wants
- When a public market produces a good at the level society wants
A: When a private market fails to produce a good at the level society wants, or doesn't produce it at all

Q: Which entity produces most public goods?
- Government
- Private firms
A: Government

Q: Why do private firms find it difficult to earn a profit by producing and selling public goods?
- Consumers don't want public goods.
- Firms cannot exclude non-payers from consuming them.
- They find there are already too many private suppliers of public goods.
A: Firms cannot exclude non-payers from consuming them.