public goods Flashcards
1
Q
what are the features of public goods
A
non-excludable and non-rivalrous.
2
Q
what is the potential market failure with public goods
A
lack of provision by private sector because of the free-rider problem - people using the good without paying for it
3
Q
how can governments intervene to remove market failure with public goods
A
state provision or make the goods excludable, e.g. tolls for roads
