1.3.3 Public Goods

1. ... are non-rivalrous/ non-diminishing and non-excludable and are provided by society as a whole. Examples are Lighthouses, Street lighting and National defence (6, 5)
4. The ... problem is people benefiting from goods without paying for them. Other people pay but the good benefits all people (4, 5)
8. Public goods characteristics: Non- ... : Consumption of the good by one person doesn't reduce the amount available to other people (11)

2. ... of government provision of public goods are Lack of competition and drive for profits leading to inefficiency, Over or under provision of goods and Public goods are expensive leading to higher taxes (9)
3. Nearly all goods are ... which means that consumption of the good from one person means the good isn't available for consumption by another person because ... have the characteristics: Excludability and Rivalry/Diminishability (7, 5)
5. ... public goods are goods that have elements of public goods and private goods and would be provided by the free market but not in large quantities (5)
6. ... are goods that have negative effects on social welfare that cannot be avoided and carry the characteristic as being non-rejectable (6, 4)
7. Public goods characteristics: Non- ... : No-one can be ... from benefiting once it has been provided and you cannot prevent other people from using it, which creates the free rider problem (10)

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