Public goods (OCR A-Level Economics): Flashcards
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13 cards from this deck
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Practise the cards
13 cards from this deck
Public goods definition
Public goods definition
Non-excludable & non-rivalrous
Private goods definition
Private goods definition
Excludable & rivalrous
Quasi-public goods definition
Quasi-public goods definition
Partially excludable & partially rivalrous
Non-excludability
Non-excludability
Cannot exclude individuals from using the good
Non-rivalry
Non-rivalry
One person's use doesn't reduce availability to others
Non-rejectability
Non-rejectability
Cannot choose not to consume if provided
Zero marginal cost
Zero marginal cost
Cost of providing to additional user is zero
Free rider problem
Free rider problem
Benefit from goods without paying, leads to under-provision
Public goods examples
Public goods examples
National defence, street lighting
Private goods examples
Private goods examples
Food, clothing
Quasi-public goods examples
Quasi-public goods examples
Toll roads, public parks
Free rider problem result
Free rider problem result
Underfunding/underproduction of goods
Why firms don't provide public goods
Why firms don't provide public goods
Cannot easily charge users, unprofitable