ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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excludability
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non-excludability
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rivalry
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non-rivalry
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Detailed explanation-1: -In economics, a public good refers to a commodity or service that is made available to all members of a society. Typically, these services are administered by governments and paid for collectively through taxation. Examples of public goods include law enforcement, national defense, and the rule of law.
Detailed explanation-2: -Private Goods are products that are excludable and rival. Public goods describe products that are non-excludable and non-rival. Common resources are defined as products or resources that are non-excludable but rival.
Detailed explanation-3: -a free rider is a type of market failure because Free Riders consume what they do not pay for. if the government stopped collecting taxes and relied on voluntary contributions, many public services would have to be eliminated.