SPEA V 186 EXAM 1 STUDY GUIDE 2026 TESTED QUESTIONS AND ACCURATE SOLUTIONS GRADED A+

SPEA V 186 EXAM 1 STUDY GUIDE 2026
TESTED QUESTIONS AND ACCURATE
SOLUTIONS GRADED A+

⩥ Nonrival or Nonexhuasive.
Answer: One person can consume the good or service to its fullest while
not reducing the good or service for others


⩥ Excludable-.
Answer: ability to exclude those who do not pay for the good or service


⩥ Nonexcludable.
Answer: no ability to exclude those who do not pay for the good or
service


⩥ private good.
Answer: a good that is both rival and excludable


ex.) television


⩥ common pool good.
Answer: rival and non-excludable

, ex.) aquifer


⩥ toll good.
Answer: non-rival and excludable


ex.) toll road


⩥ public good.
Answer: non-rival and non-excludable


ex.) National Defense


⩥ 3 traditional economic functions for government.
Answer: -maintaining economic stability
-distribution of resources
-efficient allocation of resources


⩥ Stabilization Policy (Federal).
Answer: governments role in maintaining employment, price stability
and economic growth through the use of fiscal and monetary policy