Public, Private and Quasi-Public goods

Question 1

Private goods

Answer 1

Most goods are private goods. Private goods are excludable and rival

Question 2

Pure public goods

Answer 2

Goods that are both non excludable and non-rival. Often provided by the government and are available for the benefit of society.

Question 3

Free rider problem

Answer 3

Issues arise with public goods when those who benefit from a resource aren’t the ones paying for them. It is impossible to exclude free riders from using pure public goods e.g. street lights

Question 4

Quasi-public goods

Answer 4

Public goods are either pure or quasi-pure. Most public goods are quasi as there are ways of excluding free-riders.

Question 5

Quasi-public goods notes

Answer 5

Goods that are not fully rivalrous and/or where it is possible, exclude people form consuming. In other words, some of the free rider problem can be eliminated.

Question 6

Excludable

Answer 6

Can stop someone form consuming e.g. a shopkeeper could prevent people from consuming goods unless they pay for them/ there’s a price attached.

Question 7

Rival

Answer 7

Once it is consumed, no one else can benefit from it e.g. If you eat a chocolate bar, no one else can eat that bar and you have decreased the quantity of others.

Question 8

Quasi

Answer 8

Having some but not all features e.g. rival but not excludable and vice versa.

Question 9

Technology

Answer 9

Some goods change from pure to quasi over time especially as tech develops e.g. before it would have been difficult to monitor road usage but now technology allows the charge of tolls on the road