Unit 16: Efficiency and Market Failure Flashcards
1
Q
Free rider
A
a person or organisation which receives benefits that others have paid for without making any contribution themselves
2
Q
Merit good
A
A good which is under provided by the market mechanism
3
Q
Demerit good
A
a good which is over provided by the market mechanism
4
Q
Private good
A
a good where consumption by one person results in the good not being available for consumption by another
5
Q
Public good
A
a good where consumption by one person does not reduce the amount available for consumption by another person and where once provided, all individuals benefit or suffer whether they wish to or not
6
Q
Quasi-public good / non-public good
A
a good which may not possess perfectly the characteristics of being non-excludable but which is non-rival.
