Theory
What is the economic definition of a public good?
A good that is non-excludable and non-rivalrous
Is a park with no entrance fee a public good or a private good?
A public good
What does it mean when a good is non-excludable?
It means that people cannot be prevented from using it.
Is education typically considered a private or public good?
Private good, but with public good aspects.
Is electricity typically a public good?
No
What is the free-rider problem in relation to public goods?
When individuals benefit from a good without paying for it.
Is a movie theater ticket a public good or a private good?
A private good.
What characteristic makes private goods different from public goods?
Private goods are excludable and rivalrous.
Is a toll road considered a public or private good?
A private good, because it is excludable through the toll.
Is fire protection an example of a public good?
Yes
In economic theory, who typically provides public goods?
The government, since private firms can't profitably provide them.
A lighthouse used by all ships is an example of what type of good?
A public good.
Give one example of a non-rivalrous good
Broadcast television
True or False: Public goods are always provided by the government.
False, sometimes private companies provide them, like public broadcasting
Are parks with paid entry considered public goods?
No, they are club goods.
What is the term for a good that is excludable but non-rivalrous
A club good
What type of good is a highway when there is no congestion?
A public good.
Why are clean air and water often considered public goods?
They are non-excludable and can be used by everyone.
Can a good be public in one context and private in another? Give an example
Yes, for example, a road can be public when free to use but private if tolls are charged
Can a good be both rivalrous and non-excludable?
Yes, these are common goods, like fish in the ocean.
What is the Tragedy of the Commons in relation to public resources
The overuse of a common resource because individuals act in their own interest, depleting or degrading it
What type of good is national defense?
A public good
How does congestion affect whether a good is public or private?
Congestion makes a non-rival good become rival, turning it into a private good
How do positive externalities relate to public goods?
Public goods often create positive externalities because their benefits extend beyond the individual user
Can a public good become a private good under certain circumstances?
Yes, through privatization or charging fees for access.