Chapter 16: Non-provision of Public Goods

Question 1

Free rider

Answer 1

A person or organization that receives benefits that others have paid for without making any contributions

Question 2

Non-excludability

Answer 2

Once provided, it is impossible to prevent any economic agent from consuming the good

Question 3

Non-rejectability

Answer 3

Once provided, it is impossible for any economic agent not to consume the good

Question 4

Non-rivalry, non-diminishability or non-exhaustibility

Answer 4

Consumption by one economic agent does not reduce the amount available for consumption by others

Question 5

Private goods

Answer 5

Goods that possess the characteristics of rivalry (once consumed, it cannot by any one else) AND excludability (it is possible to prevent someone else from consuming the good)

Question 6

Public goods (or pure public goods)

Answer 6

Goods that posses the characteristics of non-rivalryandnon-excludability

Question 7

Quasi-public goods / non-pure public goods

Answer 7

A good that does not perfectly possess the characteristics of non-rivalry and non-excludability and yet which also is not also perfectly rival or excludable