Public goods Flashcards
1
Q
2 features of public goods
A
Non-rivalry
Non-excludability
2
Q
Example of public goods
A
Crime control
Public service broadcasting
Flood defence
3
Q
What is a quasi-public good
A
Doesn’t have all the characteristics of a public good
4
Q
What is non-excludability
A
Cannot be confined to those who have only paid for it
5
Q
What is non-rivalry
A
One person benefiting doesn’t stop another benefitting
6
Q
How can a public good be excludable
A
charging entrance fee
fencing a park
7
Q
Benefits of government providing public goods (2)
A
- The government may provide more efficiently because of the economics of scale
- HOWEVER then may be inefficient because of a lack of competition
- So the state can fund and private sectors can provide
- Helps affordability and access to important service for lower-income household