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.

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2
Q

What is non rivalrous?

A

Means that consumption by one person does not limit the consumption by others.

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3
Q

What is non excludability?

A

Means if the good is available for one person, it is available for everyone.

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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,

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