21-Non-provision of Public Goods Flashcards
1
Q
Define Public Good
A
Public Goods are Non-Excludable and Non-Rivalrous
Eg- Street light, Flood defense, National defense and Light house
2
Q
Define Non-Excludability
A
One Person’s Consumption does not prevent another from Consuming the Good
3
Q
Define Non-Rivalrous
A
Consumption of the Good by one Individual does not reduce the amount available to others
4
Q
Define Free Rider
A
A Free Rider is an Individual who Consumes a Public good without Paying for it