priv & public goods

• What are public goods defined as?

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

  They are non-excludable and non-rivalrous
• What defines private goods?

  Excludable and rivalrous items
• How do public goods differ from private goods in terms of excludability?


  Public goods are non-excludable, private goods are excludable
• Which types of goods are considered non-excludable?

  Public goods and commons goods
• What does rivalry refer to in the context of goods?

  One person's consumption reduces availability for others
• Which type of good is characterized by rivalry?

  Private Goods
• How do the characteristics of public goods affect market efficiency?

  They lead to market failure due to free-rider problems
• Why do public goods suffer from under-provision in the market?

  Providers cannot restrict consumption, leading to free-rider issues
• What is the significance of government intervention for public goods?

  It ensures adequate provision and quality
• What are the key differences between public and private goods?

  • Public Goods:
  • Non-excludable
  • Non-rivalrous
  • Examples: National defense, streetlights
  • Private Goods:
  • Excludable
  • Rivalrous
  • Examples: Pizza, cars
• How do excludability and rivalry affect market efficiency for different goods?

  • Private Goods:
  • Excludable and rivalrous
  • Efficiently provided by the market
  • Public Goods:
  • Non-excludable and non-rivalrous
  • Suffer from market failure and under-provision