1.3.3 Public Goods Flashcards
1
Q
Public goods
A
They are non-excludable and non-rivalrous. They are under provided in a free market economy because of the free rider problem.
2
Q
Free rider problem
A
When people who do not pay for a good still receives the benefit from it in the same way people who pay for the good do.
3
Q
Private goods
A
They are excludable and rivalrous goods.
