Define the term 'quasi-public goods' (Extract G, line 3) .
In major metropolitan areas, local governments have invested heavily in constructing high-capacity municipal Wi-Fi networks to bridge the digital divide. These wireless networks are generally regarded by urban economists as quasi-public goods (line 3). The capital expenditure is funded by municipal taxes, but maintaining the physical transmitters and fiber-optic backhauls incurs substantial ongoing costs.
While access is theoretically open to any resident within range, the network faces severe bandwidth degradation during peak hours. As congestion increases, individual connection speeds plummet. To address this, several municipalities are transitioning to tiered models, where basic low-speed access remains free, but high-bandwidth activities require a paid monthly subscription.
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.