2.9 MARKET FAILURE-PUBLIC GOODS

Question 1

Private Goods

Answer 1

Goods that are rivalrous and excludable.

Question 2

Government Provision

Answer 2

In most cases, the government will choose to provide the public good by using tax revenue. This helps to solve the free-rider problem to a degree.

Question 3

Public Goods

Answer 3

Goods that are non-excludable and non-rivalrous.

Question 4

Quasi-Public Goods

Answer 4

Goods that are excludable but non-rivalrous.