SPEA V 186 EXAM 1 2025 WITH 100% ACCURATE
SOLUTIONS
The three main distinguishing parts of a government - Precise
Answer ✔✔1) Payments to government are made by those who
do not expect to receive repayment or economic benefits
proportionate to the resources that are provided;
(2) Purpose is other than to make profits, or profit equivalents;
and,
(3) There is an absence of defined ownership interests.
Characteristics of the private sector (5) - Precise Answer ✔✔-
Markets
-Exchange
-Property rights
-Rights of exclusion
-Appropriability - ability to capture and retain value from
production and diffusion of goods and services that an
individual or firm creates for its own benefit (usually
innovations).
Characteristics of the public sector - Precise Answer ✔✔-A
notable absence of markets
-Non-exchange relations
, -Absence of clear property rights
-Non-excludability
-Non-appropriability - inability to capture and retain value from
production and diffusion of goods and services that an
individual or firm creates for its own benefit (usually
innovations).
Rival goods - Precise Answer ✔✔Exhaustion through
consumption of the same good
Non-rival goods - Precise Answer ✔✔Not Exhausted through
consumption of the same good
Excludable - Precise Answer ✔✔Exclusion of non-payers
feasible
Non-excludable - Precise Answer ✔✔Exclusion of non-payers
Not feasible
Elements of pure private goods - Precise Answer ✔✔Rival and
excludable
SOLUTIONS
The three main distinguishing parts of a government - Precise
Answer ✔✔1) Payments to government are made by those who
do not expect to receive repayment or economic benefits
proportionate to the resources that are provided;
(2) Purpose is other than to make profits, or profit equivalents;
and,
(3) There is an absence of defined ownership interests.
Characteristics of the private sector (5) - Precise Answer ✔✔-
Markets
-Exchange
-Property rights
-Rights of exclusion
-Appropriability - ability to capture and retain value from
production and diffusion of goods and services that an
individual or firm creates for its own benefit (usually
innovations).
Characteristics of the public sector - Precise Answer ✔✔-A
notable absence of markets
-Non-exchange relations
, -Absence of clear property rights
-Non-excludability
-Non-appropriability - inability to capture and retain value from
production and diffusion of goods and services that an
individual or firm creates for its own benefit (usually
innovations).
Rival goods - Precise Answer ✔✔Exhaustion through
consumption of the same good
Non-rival goods - Precise Answer ✔✔Not Exhausted through
consumption of the same good
Excludable - Precise Answer ✔✔Exclusion of non-payers
feasible
Non-excludable - Precise Answer ✔✔Exclusion of non-payers
Not feasible
Elements of pure private goods - Precise Answer ✔✔Rival and
excludable
