1.1.6 Types of goods and services Flashcards
1
Q
Private good
A
A product that must be bought to be used, and where one person’s use stops someone else from using it.
2
Q
Excludability
A
Other people are can be excluded from consuming it
3
Q
Rivalrous
A
Once consumed by one person, it cannot be consumed by another
4
Q
Public goods
A
People cannot be excluded from consuming as they are available to all
5
Q
Free-rider problem
A
Consumers will not choose to pay for consumption
6
Q
Merit goods
A
Goods which the government perceives as beneficial to society and are under-consumed
7
Q
Demerit goods
A
Goods which the government perceives as having being bad for society and are over-consumed
8
Q
A
