3.8.3 Public goods, private goods, and quasi-public goods

• Private goods exhibit three key characteristics: rivalry, excludability, and rejectability
• Rejectability in private goods indicates that consumers can choose not to consume the good.


  True
• Public goods are characterized by being non-rivalrous and non-excludable
• Non-excludability in public goods means it is impossible or costly to prevent anyone from consuming the good.
• Match the type of good with its characteristics:

  Private Goods ↔️ Rivalrous, Excludable, Rejectable

  Public Goods ↔️ Non-Rivalrous, Non-Excludable

  Quasi-Public Goods ↔️ Partially Rivalrous, Partially Excludable
• What are examples of quasi-public goods?

  Education, healthcare, public transportation
• What does rivalry in private goods mean?

  One person's consumption prevents others
• Rejectability in private goods allows consumers to choose not to consume the good.


  True
• Excludability refers to the ability of suppliers to prevent those who do not pay from consuming the good
• Private goods exhibit three key characteristics: rivalry, excludability, and rejectability
• What are three examples of public goods?

  National defense, street lighting, clean air
• What are three examples of quasi-public goods?

  Education, healthcare, public transportation
• Steps in the market mechanism for private goods

  1️⃣ Supply and demand interact

  2️⃣ Equilibrium price and quantity are determined

  3️⃣ Private goods are allocated efficiently
• Rivalry in private goods means one person's consumption prevents another from consuming the same unit
• What is the market mechanism for private goods based on?

  Supply and demand
• Excludability in private goods allows suppliers to prevent non-payers from consuming the good.


  True
• Rivalry in private goods means that one person's consumption prevents another from consuming the same unit of the good.

  True
• Excludability in private goods refers to the ability of suppliers to prevent those who do not pay from consuming the good.
• What are examples of private goods?

  Food, clothing, cinema tickets
• Non-rivalrous consumption means that one person's consumption does not prevent others from consuming the same good.


  True
• What are examples of public goods?

  National defense, street lighting, clean air
• Quasi-public goods are partially rivalrous and partially excludable.


  True
• Private goods exhibit three key characteristics: rivalry, excludability, and rejectability
• Excludability in private goods refers to the ability of suppliers to prevent those who do not pay from consuming the good.
• What does rivalry mean in the context of private goods?

  One's consumption prevents others
• What does rejectability indicate about a good?

  Consumers can choose not to consume
• Public goods are non-rivalrous and non-excludable


  True
• Quasi-public goods are partially rivalrous and partially excludable
• Match the characteristic with the correct type of good:

  Rivalrous ↔️ Private goods

  Non-excludable ↔️ Public goods

  Partially rivalrous ↔️ Quasi-public goods
• The equilibrium price and quantity are found where the supply curve intersects the demand curve


  True
• What are two examples of goods that are non-rivalrous and non-excludable?

  Public goods
• One person's consumption of a private good prevents another from consuming the same unit
• How does the market ensure private goods are efficiently allocated?

  Through the price system
• What type of rivalry characterizes public goods?

  Non-rivalrous
• The free market provides public goods efficiently due to their non-rivalrous and non-excludable nature.

  False
• Why is the supply of public goods often insufficient in the free market?

  Lack of profitability
• Market failure occurs for public goods due to a lack of profitability
• Rivalry in private goods means one person's consumption reduces availability for others.


  True
• What is an example of a public good?

  National defense
• Non-rivalrous consumption means one person's use of a public good does not diminish its availability for others.


  True