Chapter 18 Flashcards
1
Q
What are the properties of a private good?
A
Rivalrous- consumption by one person will mean that it cannot be consumed by another
Excludable- once gained you can prevent others from attaining it
1
Q
What are the properties of public goods?
A
Non Rivalrous- consumption by one person doesn’t mean that another person cannot attain it
Non-excludable- once provided, no singular person can be excluded from benefiting
2
Q
What are Quasi public goods?
A
Goods that have the properties of both public and private goods
e.g
roads vs taxed roads
beaches vs private beaches
3
Q
What is the free rider problem?
A
No singular person is the recipient of the good or service, there is no incentive to pay for it
fixed by taxing
