Y1 26 Public goods

Question 1

What is a pure public good?

Answer 1

Non-excludable and non-rival:
no price can be charged if one person uses it and using good does not diminish quantity

Question 2

Pure public good examples

Answer 2

Flood defence,street lights

Question 3

What is the free rider problem?

Answer 3

Individuals do not contribute to public good provision as it is free is someone else pays for it

Question 4

What is a Quasi public good?

Answer 4

A semi public good that can be rival or excluding

Question 5

Quasi public good examples

Answer 5

Roads: Toll booths add exclusion, high traffic adds rivaling
Beaches: If beach access is paid access only,congestion creates rivalling