Neccesity Of Public Sector Flashcards
1
Q
What does the public sector do
A
Provision of goods and services
2
Q
Discuss the provision of goods and services
A
State is responsible for providing goods and services
3
Q
What are rivalrous goods
A
Cannot be used by multiple eg milk
4
Q
What are communal goods
A
Can be used by all eg street light
5
Q
What are collective goods
A
Cannot exclude someone from use
Result in free riders
6
Q
What is externalities
A
The benefits or costs resultant from a good or service, not reflected in the price
7
Q
Give examples of externalities
A
Positive… employment
Negative… pollution
8
Q
What is a merit good
A
More public benefit than private benefit
Eg healthcare
9
Q
What is a demerit good
A
Socially harmful
Eg cigarette
