What is a public good?

A public good is a good that is non excludable and non rivalrous. Non excludable means that anyone can use it; the benefits are not limited to just those who paid for it. Non-Rivalrous means that consumption by one person does not prevent consumption by others. Their non excludable nature may lead to the 'free-rider' problem for which people use the good without paying for it. Public goods are an example of a market failure as the private sector rarely provides them as they gain no profit from them. Therefore the government has to decide what output is socially appropriate. An example of a public good is a lighthouse as anyone can use it and its consumption is not limited to just one person.

IW
Answered by Isabella W. Economics tutor

2435 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Evaluate the impact of the introduction of a sugar tax on fizzy drinks in the UK.


Why did productivity in the UK remained stagnant after 2007?


What is the difference between Microeconomics and Macroeconomics?


I am not convinced of the inter-related nature of the economy. How could increased productivity in Europe impact upon British house prices?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning