ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Non-rejectable: The collective supply of a public good for all means that it cannot be rejected by people, a good example is a nuclear defence system or flood defence projects.

Detailed explanation-2: -Non-rejectability – once a public good is supplied it cannot be rejected by beneficiaries. Non-marginal cost – once supplied, the marginal cost of supplying another individual is zero.

Detailed explanation-3: -public good, in economics, a product or service that is non-excludable and nondepletable (or “non-rivalrous”).

Detailed explanation-4: -Therefore, public goods are non-rivalry and non-excludability. Examples of public goods are education, infrastructure, lighthouses, flood control systems, knowledge, fresh air, national security, official statistics, etc. Electricity is not a public good, it’s a private good.

Detailed explanation-5: -A public good has two key characteristics: it is nonexcludable and nonrivalrous. Nonexcludable means that it is costly or impossible for one user to exclude others from using a good. Nonrivalrous means that when one person uses a good, it does not prevent others from using it.