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3 Cards in this Set
- Front
- Back
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What are public goods? |
Public goods are provided centrally through the government and are funded through taxes. They are free at point of use. Public goods represent a missing market - no market incentive (no private firms are willing to supply these goods as there is an absence of profit). The government provides these goods because otherwise they would be underconsumed. |
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What are the characteristics of public goods? |
- Non Rivalry - Consumption by one person doesn't decrease the consumption of anyone else. - Non Excludable - Cant exclude anyone from consumption - people can become free riders(consume without contributing). - Non Rejectable - People have to accept. |
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What are some examples of public good? |
- Sanitation infrastructure - Flood defence - Crime control for a whole country - Vaccinations - Streetlighting |
