5.3 Micro Flashcards

1
Q

What are public goods?

A

Non- rival goods

Non-excludable goods

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2
Q

What are non-rival goods?

A

Where consumption of the good does not reduce the amount available for consumption for others

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3
Q

What are non-excludable goods?

A

Where, once provided, it is impossible to stop other individuals from using them

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4
Q

What can public goods have?

A

Positive and negative externalities

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5
Q

What is a free rider?

A

Someone who benefits from a good or service without paying for it

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6
Q

When is the government likely to intervene?

A

When there is little incentive for firms to supply goods and services

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7
Q

How are public goods categorised?

A

Non-excludable and non-rival

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8
Q

What are public goods an example of?

A

Complete market failure

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9
Q

What are the categories of private goods?

A

Rival goods

Excludable

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10
Q

What are rival goods?

A

Where consumption of the good impacts the amount available to consume for others

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11
Q

What are excludable goods?

A

It is possible for to stop other individuals from using them

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12
Q

Can there be free riders with private goods?

A

No, non payers can be excluded from the consumption of private goods

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13
Q

What are quasi goods?

A

Public goods that possess some but not all characteristics of public goods
Partially excludable or partially rival
E.g. roads

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