Economics 1.3 & 1.4

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What is meant by Non - Excludable?
By consuming the good, someone else is not prevented from consuming the good as well.
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What is meant by Non - Rival?
The benefit other people get from the good does not diminish if more people consume the good.
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What are Free Riders?
People who do not pay for the good still receive benefits from it, in the same way people who pay for the good do.
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What is a private good?
Private goods are rival and excludable. For example, a chocolate bar can only be consumed by one consumer.
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What is a Quasi - Public good?
Quasi (non-pure) public goods have characteristics of both public and private goods. They are partially provided by the free market.
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What is a public good?
A good that is both non - rivalrous, and non - excludable.
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What is Symmetric Information?
Symmetric information means that consumers and producers have perfect market information to make their decision.
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What is Asymmetric Information?
Asymmetric information leads to market failure. This is when there is unequal knowledge between consumers and producers.
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Other cards in this set

Card 2

Front

What is meant by Non - Rival?

Back

The benefit other people get from the good does not diminish if more people consume the good.

Card 3

Front

What are Free Riders?

Back

Preview of the front of card 3

Card 4

Front

What is a private good?

Back

Preview of the front of card 4

Card 5

Front

What is a Quasi - Public good?

Back

Preview of the front of card 5
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