Public goods are nonexcludable and non-rivalrous from "summary" of The Economics Book by DK
Public goods are goods that are nonexcludable and non-rivalrous. Nonexcludable means that it is impossible to exclude anyone from benefiting from the good once it is provided. This is because it is difficult to charge people who do not pay for the good. For example, if a lighthouse is built to guide ships safely to shore, it is impossible to prevent ships from using its light to navigate, regardless of whether they have contributed to its maintenance or not. Non-rivalrous means that one person's consumption of the good does not reduce the amount available for others to consume. In other words, the consumption of the good by one person does not take away from its availability for others. For instance, national defense is a public good because one person's protection does not diminish the protection available to others. These cha...
Similar Posts
The middle class expanded, but disparities in wealth remained
In the midst of all the prosperity that has come to characterize our society, there is a curious paradox that cannot be overloo...
Competition can foster innovation
Competition plays a crucial role in driving innovation in the economy. When firms are competing against each other in the marke...
The role of political parties in shaping policy
The influence of political parties on policy formation is a topic of great importance in the realm of government. It is through...
Inflation undermines economic stability
Inflation can have a detrimental effect on the stability of an economy. When prices rise rapidly and unpredictably, individuals...
GDP measures total income in an economy
GDP, or gross domestic product, is a measure of the total income of everyone in the economy. It is the market value of all fina...
Poverty and discrimination are global challenges
The issue of poverty and discrimination is not confined to any one country or region; rather, it is a global challenge that aff...
Honesty and integrity in leadership are essential
It is imperative for a leader to possess honesty and integrity. Without these essential traits, a leader cannot hope to earn th...
Investment drives economic development
Investment is a critical driver of economic growth and development. When individuals or businesses invest in new projects or ve...
Labor markets are affected by business cycles
Labor markets are influenced by the fluctuations in business cycles. During periods of economic expansion, businesses tend to i...
Regulatory oversight prevents market abuse
Regulatory oversight plays a crucial role in ensuring that market abuse is prevented. Without proper regulation, there is a ris...