Priv vs public goods

• What are public goods defined as?

  Non-excludable and non-rivalrous items
• Why are street lights considered a public good?

  They provide light to everyone without payment
• What defines private goods?

  Excludable and rivalrous items
• Why is a slice of pizza considered a private good?

  Only the purchaser can consume it
• What are the characteristics of public and private goods?

  • Public Goods:
  • Non-excludable
  • Non-rivalrous
  • Private Goods:
  • Excludable
  • Rivalrous
• What does excludability refer to?

  Ability to prevent consumption without payment
• Which types of goods are considered non-excludable?

  Public goods and commons goods
• How do rivalrous goods differ from non-rivalrous goods?

  Rivalrous goods reduce availability when consumed
• If a good is both excludable and rivalrous, what type of good is it?

  Private good
• Why do public goods require government intervention?

  They are non-excludable and underprovided by the market
• What is the significance of differences between public and private goods for market efficiency?

  • Private Goods:
  • Market-based allocation
  • High efficiency
  • Public Goods:
  • Government-funded allocation
  • Low efficiency without intervention
• What type of good is free education provided by the government?

  Public good