1.3.3 Flashcards
Public Goods
1
Q
Non-rival
A
The use of a good by one does not diminish the use of it for another
2
Q
Non-excludable
A
Those who have no paid for the good cannot be excluded
3
Q
Non-rejectable
A
Once a public good is provided it cannot be rejected by beneficiaries
4
Q
Free rider problem
A
An economic concept of a market failure that occurs when people are benefiting from resources, goods, or services that they do not pay for.
5
Q
Quasi-public good
A
A good or service with some of the characteristics of a public good or only some of the time eg. beach, road
6
Q
Quasi-public good characteristics
A
- Semi-non-rival (eg. beach, roads)
- Semi-non-excludable (eg. roads)
- Rival but non-excludable (eg. atmosphere)
Excludable but non-rival (eg. streaming services)
7
Q
Government failure
A
When government intervention increases the welfare loss
