public sector Flashcards
what is the public sector
owned and run by the government, it is funded by tax revenue
why do we need a public sector
•they would not be provided by the private sector as no profit
•non-rivalry
•non excludablility
what is a pure public good
good or service that are non excludable and non rival
what is an example of a non excludable product
flood defences , everyone benefits
what is a non rival product
consumption by one person does not reduce amount available for others
what is an example of a non rival product
wifi, consumption by one person doesn’t reduce the amount for others
what are merit goods
goods the government feels will be under consumer, it can be subsidised or provided free at point of use
example of a merit good
education , healthcare services
what causes merit goods to be merit goods
people do not fully understand the benefit
they can be rejectable, rival, and exclude
there is social and private benefits
