ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -1. Non-excludability: The benefits derived from pure public goods cannot be confined solely to those who have paid for it. Non-payers can enjoy the benefits of consumption at no financial cost – economists call this the ‘free-rider’ problem-and it means that people have a temptation to consume without paying!

Detailed explanation-2: -Non-excludable goods and excludable goods are opposites. The former means every single person can access a certain public good and consume it, while the latter refers to goods that restrict some people from using them. Excludable goods are private goods, while non-excludable goods are public goods.

Detailed explanation-3: -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-4: -Besides national defense, other examples of public goods which satisfy the characteristics of non-rival and non-excludable are public sanitation, scientific research and broadcast television. For any one of those examples, an additional consumer does not impact the amount of the good available to other consumers.

Detailed explanation-5: -Non-excludable goods are public goods that cannot exclude a certain individual or group of individuals from using them. For this reason, it is nearly impossible to restrict access to the consumption of non-excludable goods. A public road is an example of a non-excludable good.