Public Goods

Question 1

Define Public Goods and Give an Example

Answer 1

Its use by an individual does not stop others from using it whilst its consumption does not reduce the amount available for consumption by others. E.g. a school

Question 2

Define Non-Rival Goods and Give an Example

Answer 2

Consumption of the goods does not reduce the amount available for consumption for others. E.g. a tv show

Question 3

Define Non-Excludable Goods and Give an Example

Answer 3

Where, once provided, it is impossible to stop other individuals from using goods and services. E.g A public road

Question 4

Define Rival Goods and Give an Example

Answer 4

Where consumption of the goods reduces the amount available for consumption by others. E.g. food, clothes

Question 5

Define Free Rider

Answer 5

Someone who benefits from a good or service without paying for it

Question 6

Define Excludable Goods and Give an Example

Answer 6

Where, once provided, it is possible to stop other individuals from using them. E.g golf club subscription, cable tv subscription

Question 7

Define Private Goods and Give an Example

Answer 7

Where its use by an individual stops others from using it whilst its consumption reduces the amount available for consumption by others. E.g dinner at restaurant or groceries

Question 8

Define Quasi-public Goods and Give an Example

Answer 8

A private good that is similar to a pure public good but there is an ability to stop non-paying consumers from using it. E.g. Public transport, park, library.