1.3.3 - Public goods

Cards (5)

  • Private goods is a goods that are rivalry and excludable
  • Public goods are goods that are non-excludable, non-rivalry and non-rejectable
  • Free rider principle is when people who do not pay for a public good still receive benefits from it so the private sector will under-provide
  • Example or public goods:
    • street lightning
    • Flood defence systems
    • online knowledge
  • A good example of a public good is streetlights as you cannot prevent someone using the street light nor does their use prevent someone else seeing the light