ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A public good has two key characteristics: it is nonexcludable and nonrivalrous. These characteristics make it difficult for market producers to sell the good to individual consumers. Nonexcludable means that it is costly or impossible for one user to exclude others from using a good.

Detailed explanation-2: -Public goods describe products that are non-excludable and non-rival. That means no one can be prevented from consuming them, and individuals can use them without reducing their availability to other individuals. Examples of public goods include fresh air, knowledge, national defense, street lighting, etc.

Detailed explanation-3: -private goods both excludable and rivalrous, where excludability means that producers can prevent some people from consuming the good or service based on their ability or willingness to pay and rivalrous indicates that one person’s consumption of a product reduces the amount available for consumption by another.

Detailed explanation-4: -To be classified as a public good, the product or service must remain non-excludable and non-rivalrous. The types of public goods include security, education, knowledge, infrastructure, environment and health.