5.3 Public goods, private goods and quasi-public goods

Question 1

What is a public good?

Answer 1

A public good is one where its use by an individual does not stop others from using it whilst its consumption does not reduce the amount available for consumption by others.

Question 2

What are the characteristics of a public good?

Answer 2

non-rival and non-excludable

Question 3

What is a pure public good?

Answer 3

A pure public good is one where it is impossible to exclude someone from consuming it if they are unwilling to pay for its use

Question 4

What does non-excludable mean?

Answer 4

Non-excludable means that non paying customers cannot be excluded from consuming a good

Question 5

What does non-rival mean?

Answer 5

Non-rival means that one person’s enjoyment of the good doesn’t diminish another person’s enjoyment

Question 6

What is a private good?

Answer 6

A private good is one where its use by an individual stops others from using it whilst its consumption reduces the amount available for consumption by others.

Question 7

What is a quasi-public good?

Answer 7

A quasi-public good is similar to a public good but has elements of a private good that provide some ability to stop non-paying consumers from using it

Question 8

What is technical change?

Answer 8

Technical change describes the process of innovation, invention and the widespread use of technology in society