Public Goods Flashcards
1
Q
Solution to the free-rider problem
A
Make paying for the public goods non-negotiable as it is done through taxes.
2
Q
Quasi-Public Goods
A
They are excludable but non-rivalrous e.g. the internet
Often under produced as the marginal social benefit exceeds the marginal social cost
3
Q
Public Good def.
A
When a good is non-excludable (not possible to prevent anyone benefitting from it) and non-rivalrous (one person consuming the good doesn’t prevent another person from consuming it)
