You create a video to audition for film school. It ends up being viewed by over 500,000 people. What are the additional people enjoying?
A) a consumable leisure good
B) the effect of maximizing trade
C) the effect of conditional convergence
D) the effect of a spillover good

Question

Quizplus · Accepted Answer

The additional people enjoying the video are experiencing the effect of a spillover good. A spillover good is a product or service that provides benefits to individuals who are not the direct consumers or payers for that product/service. In this case, the film school audition video was intended for the film school admissions committee, but it ended up being viewed by over 500,000 people who are not applying to film school. These individuals are not the direct consumers of the video, but they are still enjoying the benefits of watching it. Therefore, the video can be considered a spillover good.

You Create a Video to Audition for Film School