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

• What is a quasi-public good characterized by?

  Non-rivalry but excludability
• Market failures occur with public goods due to free-rider issues.


  True
• What are private goods characterized by?

  Rivalry, excludability, rejectability
• Match the type of good with an example:

  Private Good ↔️ A slice of pizza

  Public Good ↔️ Street lighting

  Quasi-Public Good ↔️ Toll road
• Why does the government intervene in the provision of public goods?

  To address market failures
• What does non-rivalry in public goods mean?

  One person's consumption does not diminish availability to others
• Government intervention is necessary for public goods because private markets often under-supply them.

  True
• What is an example of a good with rivalry and excludability?

  A slice of pizza
• Private markets can efficiently supply public goods without government intervention.

  False
• Public goods are characterized by non-rivalry and non-excludability
• Public goods are characterized by non-rivalry and non-excludability
• What does non-excludability mean for public goods?

  Impossible to prevent consumption
• What are public goods defined by?

  Non-rivalry and non-excludability
• Non-excludability means it's impossible to prevent consumption regardless of payment
• What is an example of a public good?

  Street lighting
• Examples of quasi-public goods include toll roads and cable television
• Public goods are non-excludable, while quasi-public goods are excludable.


  True
• What does rivalry mean for private goods?

  One person's consumption prevents another
• Rejectability allows consumers to choose not to purchase or consume the good
• Street lighting is an example of a public good because it is non-rivalrous and non-excludable.


  True
• Match the good type with its characteristics:

  Private Goods ↔️ Rivalrous and Excludable

  Public Goods ↔️ Non-Rivalrous and Non-Excludable

  Quasi-Public Goods ↔️ Non-Rivalrous and Excludable
• Public goods exhibit non-rivalry and non-excludability, requiring government intervention for adequate provision.


  True
• What are the two defining characteristics of private goods?

  Rivalry and excludability
• Public goods exhibit non-rivalry and non-excludability.


  True
• Public goods are non-excludable, meaning it is impossible to prevent anyone from consuming the good
• What is an example of a quasi-public good?

  Toll road
• What problem arises with public goods due to their non-excludability?

  Free-rider problem
• Match the characteristic with its description:

  Non-rivalry ↔️ One person's use doesn't reduce availability for others

  Non-excludability ↔️ Impossible to prevent consumption regardless of payment

  Free-rider problem ↔️ Individuals benefit without paying

  Government intervention ↔️ Funding and managing public goods
• Government intervention ensures public goods are available for everyone through taxation or public services
• What are the three key traits of private goods?

  Rivalry, excludability, rejectability
• Rivalry in private goods means that consumption by one person prevents another from consuming the same good
• Rejectability in private goods means consumers can choose not to purchase or consume the good.


  True
• Government intervention in private goods may be necessary to ensure equitable distribution or prevent market failure
• What is an example of a public good that requires government funding and maintenance?

  Street lighting
• Quasi-public goods are non-rivalrous but excludable.


  True
• Quasi-public goods exhibit non-rivalry, meaning one person's consumption does not diminish availability to others
• What are the three key characteristics of private goods?

  Rivalry, excludability, rejectability
• What are the two key characteristics of public goods?

  Non-rivalry and non-excludability
• What problem arises with public goods due to their non-excludability?

  Free-rider problem
• Private goods are rivalrous and excludable.

  True