What is a public good?

A public good is good which is non- excludable and non-rival.This means the utility one person gains from the good does not diminish the utility another person may gain from the good. (non-rival)This also means that it is almost impossible to stop any person gaining utility from the good. (non-excludable)A good example would be a flood defence.

JS

Related Economics A Level answers

All answers ▸

Why are no supernormal profits made in perfect competition in the long run?


How can the central bank affect economic activity using monetary policy


Can you explain the difference between joint demand and competitive demand?


Why are no supernormal profits made in perfect competition in the long run?