public good an and ev

Question 1

public good 2 characteristics

Answer 1

non excludable and non rivalrous

Question 2

what does non excludable mean

Answer 2

no price is charged to consumers therefore it is accessible to everyone

Question 3

what does non rivalrous mean

Answer 3

one persons consumption does not reduce another consumers

Question 4

2 examples of public goods

Answer 4

street lights and roads

Question 5

what is the free rider problem and how does it occur

Answer 5

free rider problem occurs as rational consumers can access the goods without paying for them - by instead waiting for others to contribute

Question 6

how does free rider problem stop private firms producing these goods

Answer 6

as if all people didn’t contribute then no profits would be made - gov intervention therefore needed - would be no supply of public goods in free market

Question 7

what is a quasi public good

Answer 7

possess one but not the other characteristic of a public good

Question 8

example of a quasi public good

Answer 8

toll roads make roads excludable during peak rush hour times when there is stand still congestion - become rivalrous

Question 9

how is technology changing nature of public goods

Answer 9

easier to exclude consumers - such as vide and music streaming