Unit 18 Flashcards
What is a free rider?
A free rider is a person or organisation which receives benefits that others have paid for without making any contributions.
Define non-excludability.
Once provided, it is impossible to prevent any economic agent from consuming the good.
Define non-rejectability.
Once provided, it is impossible for any economic agent not to consume the good.
Define non-rivalry.
Consumption by one economic agent does not reduce the amount available for others to consume.
What is a private good?
A private good is a good which possesses the characteristics of rivalry and excludability. This means that once consumed, it cannot be consumed by anyone else and it is possible to prevent someone else from consuming the good.
What is a public/pure public good?
A public/pure public good is one which possesses the characteristics of non-rivalry and non-excludability which includes the characteristic of non-rejectability.
What is a quasi-public good/ non-pure public good?
A quasi-public good is a good which does not perfectly possess the characteristics of non-rivalry and non-excludability and yet which also is not perfectly rival or excludable.
