Chapter 11

I would give this chapter a 1.5 for difficulty. I think the only hard part will be making sure that I remember the difference between common resources, public goods, private goods, and natural monopolies. If you know which is which its not to hard to discern which category a certain good or service falls under. As we said in class, goods can shift from public goods to common resources based on how many people use them. If one persons use isn't affecting another than it is a public good, but if they do affect others than it's a common resource. This was another important chapter to showcase the governments importance in an economy. People respond to incentives and if they think that they can get something they want for free without actually paying for it then they are likely to do so. The government is important to minimize free-riding, and create economic efficiency where people would otherwise not pay for it.