Micro 8.3 0.0 / 5 ? EconomicsPublic Goods, Private Goods and Quasi-Public GoodsA2/A-levelAQA Created by: neve.whinnCreated on: 17-03-20 20:38 What are public goods? goods that are non-excludable and non-rival in consumption. 1 of 9 What does non-excludable mean? Non-paying customers cannot be excluded from consuming a good, once it has been produced. 2 of 9 What does non-rival mean? One person’s enjoyment of the good does not diminish another person’s enjoyment of the good. 3 of 9 What are public goods an example of? Complete market failure, as the free market would have no incentive to provide them. 4 of 9 What does the free rider problem refer to? Individual consumers hoping to get a free ride without paying for the benefit they enjoy. 5 of 9 What are private goods? Goods that are rival and excludable in consumption. 6 of 9 How are private goods rival and excludable in consumption? Non-payers can be excluded from consuming a good and consumption by one person diminishes the enjoyment of the good by another. 7 of 9 What are quasi-public goods? Goods which exhibit some of the characteristics of a public good. 8 of 9 Are quasi-public goods rival and/or excludable? They may be partially excludable and/or partially rival. 9 of 9
Comments
No comments have yet been made