1. Goods having some but not all of the characteristics of a public good
- Quasi public good
- Private good
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2. Demerit goods, have ______ externalities arising out of their use
3. What is meant by non-rivalry?
- Consumption by any one person does not affect consumption of any others
- People can benefit directly from the consumption of a public good but do not contribute towards its provision
- Individuals cannot be excluded from their consumption. They are provided for all, irrespective of whether they have paid for the product indirectly through taxation.
4. Positive externalities result in?
5. What are externalities ?
- Externalities occur when a third party is affected by the economic decisions of others.
- Externalities occur when a first party is affected by the economic decisions of others
- Externalitites occur when the marginal private cost is higher the marginal social cost.