1.8.3 Public goods, private goods and quasi-public goods
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The two tests that classify goods

The two tests that classify goods

ExcludableNon-Excludable
RivalrousPrivate Goods
(e.g., food, clothing)		Common Resources
(e.g., fish stocks)
Non-RivalrousQuasi-Public / Club Goods
(e.g., toll roads, cable TV)		Public Goods
(e.g., national defense)

Economists classify goods using rivalry and excludability because these features determine whether prices can allocate resources efficiently. If firms cannot charge people in line with the benefits they receive, market failure becomes more likely.

1.8.3 Public goods, private goods and quasi-public goods Lesson

  1. A Level
  2. /Economics
  3. /1.8.3 Public goods, private goods and quasi-public goods