22)missing Markets:public Goods

Question 0

What is non-pure public goods

Answer 0

⚫️goods that are either
➡️non-excludable or non-rival
➡️but not both

Question 1

What is pure-public goods

Answer 1

⚫️two main characteristics

⚫️non-rivalry
➡️consumption by one person
➡doesn’t reduce the amount available for others

⚫️non-excludability
➡noone can be prevented from using it

Question 2

Is street light non rival?

Answer 2

✅if one person uses the light

➡️does not reduce amount of light available for others

Question 3

Is a street light non-excludable

Answer 3

⚫️once street light is provided

➡️impossible to stop others from benefitting from it

Question 4

Is a chocolate bar non-rival

Answer 4

❌if a person eats a chocolate bar

➡️someone else cannot eat the same chocolate bar

Question 5

Is chocolate bar non-excludable

Answer 5

❌if not enough money

➡️cant buy it

Question 6

Who provides public goods

Answer 6

Government

Question 7

Why do government ps provide the public goods

Answer 7

⚫️no-one has incentive to provide the,

➡️cannot make profit

Question 8

What is free rider problem

Answer 8

➡️even if free market provide public goods
➡️many consumers unlikely to pay for them
➡️as the can effectively consume them for free
➡️leading to free rider problem

➡️misallocation of resources occurs
➡️due to under provision