21-Non-provision of Public Goods

Question 1

Define Public Good

Answer 1

Public Goods are Non-Excludable and Non-Rivalrous
Eg- Street light, Flood defense, National defense and Light house

Question 2

Define Non-Excludability

Answer 2

One Person’s Consumption does not prevent another from Consuming the Good

Question 3

Define Non-Rivalrous

Answer 3

Consumption of the Good by one Individual does not reduce the amount available to others

Question 4

Define Free Rider

Answer 4

A Free Rider is an Individual who Consumes a Public good without Paying for it