Private, Public, and Quasi-Public Goods (AQA A-Level Economics): Flashcards
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Practise the cards
10 cards from this deck
Excludability
Excludability
Ability to prevent people from consuming a good
Rivalry (diminishability)
Rivalry (diminishability)
One person's consumption reduces availability for others
Private goods characteristics
Private goods characteristics
Excludable and rival
Public goods characteristics
Public goods characteristics
Non-excludable and non-rival
Free-rider problem
Free-rider problem
Consuming benefits without paying; can't be excluded
National defence as public good
National defence as public good
Non-rival benefit & can't exclude non-payers from protection
Missing market
Missing market
Needed good/service not provided by market mechanism
Quasi-public goods
Quasi-public goods
Not fully non-rival and/or exclusion is possible
Lighthouse public good features
Lighthouse public good features
Multiple ships use beam; can't exclude non-payers
Tech impact on roads classification
Tech impact on roads classification
Electronic pricing enables exclusion, making roads quasi-public