Non-provision of public goods Flashcards
1
Q
What are public goods?
A
Are those goods that have two key characteristics of being non rivalrous and non excludable.
2
Q
What is non rivalrous?
A
Means that consumption by one person does not limit the consumption by others.
3
Q
What is non excludability?
A
Means if the good is available for one person, it is available for everyone.
4
Q
What is the free rider problem?
A
Means that once a product is provided it is impossible to prevent people from using it and therefore impossible to charge for it,
