Public goods

6 flashcards · Economics · by Addaneye

1. Characteristics of public goods

   Non-excludable Non-rivalrous Non-rejectable

2. What does non-excludable mean?

   If a good is available for one person, then it is available for everyone

3. What does non-rivalrous mean?

   Consumption by one person does not limit consumption by others

4. What does non-rejectable mean?

   The good cannot be rejected

5. Examples of public goods

   Street lighting Nuclear defense system National parks

6. What is the free rider problem

   Once a good is made provided it is impossible to prevent people from using it and thus impossible to charge for it