Public goods Flashcards
1
Q
What are the features which make a good a public good ?
A
They are non excludable - 0 price can be charged and the good cant be confined to those who can pay
They are non rival- quantity of the good does not go down for others upon consumption
2
Q
Give an example of a public good
A
Flood defences
Street lights
Roads
3
Q
What is the free rider problem ?
A
When people don’t contribute to the provision of the good as they don’t have to pay in order to consume the good .
If everyone did this then no one would pay for the Public goods which leads to 0 private motive to supply them which leads to a missing market
4
Q
What are quasi public goods ?
A
Sometimes they are public and sometimes they adopt private features
E.G healthcare and also toll roads
5
Q
A
