Practice question · Sort into groups
Sort into public goods vs private goods.
Groups: Public good · Private good
- A pair of shoes
- Clean air regulation
- A sandwich
- National defence
- A cinema ticket
- Street lighting
Hints
- Two properties matter: rivalry and excludability.
- A public good fails both tests.
Show the answer
Public good: National defence, Street lighting, Clean air regulation
Private good: A sandwich, A pair of shoes, A cinema ticket
Why
Public goods are non-rival and non-excludable. Private goods are rival and excludable. The boundary cases (club goods, common resources) lie between.
Practise Externalities and Public Goods
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