Economics Public Goods Study Cards

Enhance Your Learning with Economics - Public Goods Flash Cards for quick learning



Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all individuals and one person's consumption does not diminish the availability for others.

Non-Excludability

A characteristic of public goods where it is difficult or impossible to exclude individuals from consuming the good, even if they do not contribute to its provision.

Non-Rivalry

A characteristic of public goods where one person's consumption of the good does not reduce the amount available for others to consume.

Free Rider Problem

The issue that arises when individuals can benefit from a public good without contributing to its provision, leading to underproduction or the collapse of the good.

Market Failure

A situation where the market fails to efficiently allocate resources, such as in the case of public goods where they may be underprovided due to the free rider problem.

Government Intervention

The involvement of the government in providing public goods to overcome the free rider problem and ensure their provision for the benefit of society.

Cost-Benefit Analysis

An evaluation of the costs and benefits associated with the provision of public goods to determine whether they should be provided by the government.

Externalities

The positive or negative effects of the production or consumption of a good on third parties who are not directly involved in the transaction.

Tragedy of the Commons

A situation where individuals exploit a shared resource, leading to its depletion or degradation, highlighting the importance of managing common pool resources.

Common Pool Resources

Resources that are rivalrous but non-excludable, such as fisheries or forests, which require collective action to prevent overuse or depletion.

Public Finance

The study of how the government raises and spends money to provide public goods and services, and how it influences the economy.

Taxation

The levying of taxes by the government to generate revenue for the provision of public goods and services, and to influence economic behavior.

Public Goods Game

An experimental game used to study cooperation and the provision of public goods, where individuals can choose to contribute or free ride.

Positive Externality

A type of externality where the production or consumption of a good creates benefits for third parties, leading to underprovision in the absence of government intervention.

Negative Externality

A type of externality where the production or consumption of a good imposes costs on third parties, leading to overprovision in the absence of government intervention.

Marginal Social Benefit

The additional benefit to society from the consumption of an additional unit of a public good, taking into account the benefits to all individuals.

Marginal Social Cost

The additional cost to society from the production of an additional unit of a public good, taking into account the costs to all individuals.

Pareto Efficiency

A state where it is impossible to make any individual better off without making someone else worse off, indicating an efficient allocation of resources.

Lindahl Equilibrium

A method of financing public goods where individuals contribute based on their willingness to pay, ensuring efficient provision and avoiding the free rider problem.

Samuelson Condition

The condition that the sum of individuals' marginal willingness to pay for a public good equals the marginal cost of its provision, ensuring efficiency.

Voluntary Provision

The provision of public goods through voluntary contributions by individuals, which may be insufficient due to the free rider problem.

Coase Theorem

The proposition that if property rights are well-defined and transaction costs are low, private bargaining can lead to an efficient allocation of resources, even in the presence of externalities.

Public-Private Partnership

A collaboration between the government and private sector to provide public goods and services, combining the efficiency of the private sector with the public interest.

Crowdfunding

A method of financing public goods through small contributions from a large number of individuals, often facilitated through online platforms.

User Fees

Charges imposed on individuals for the use of public goods or services, providing a source of revenue for their provision.

Benefit Principle

The principle that individuals should contribute to the provision of public goods based on the benefits they receive, ensuring fairness and efficiency.

Ability-to-Pay Principle

The principle that individuals should contribute to the provision of public goods based on their ability to pay, ensuring a progressive distribution of the tax burden.

Tiebout Model

A model of local public goods provision where individuals can choose the jurisdiction that best matches their preferences, leading to efficient provision through competition among local governments.

Public-Private Exclusion

The exclusion of certain individuals from the benefits of public goods due to their inability to pay, raising concerns of inequality and social exclusion.

Merit Goods

Goods or services that are considered beneficial for individuals or society, often provided by the government to ensure their provision and promote social welfare.

Demerit Goods

Goods or services that are considered harmful or undesirable, often subject to government intervention through regulation or taxation to discourage their consumption.

Public Goods and National Defense

The provision of national defense as a public good by the government to protect the country and its citizens from external threats.

Public Goods and Education

The provision of education as a public good by the government to ensure equal access to knowledge and promote human capital development.

Public Goods and Healthcare

The provision of healthcare as a public good by the government to ensure access to medical services and promote public health.

Public Goods and Infrastructure

The provision of infrastructure as a public good by the government to support economic development and improve the quality of life for citizens.

Public Goods and Environmental Protection

The provision of environmental protection as a public good by the government to preserve natural resources and mitigate pollution.

Public Goods and Research and Development

The provision of funding for research and development as a public good by the government to promote innovation and technological advancement.

Public Goods and Cultural Preservation

The provision of funding for the preservation of cultural heritage as a public good by the government to protect and promote cultural diversity.

Public Goods and Disaster Relief

The provision of disaster relief as a public good by the government to assist affected individuals and communities in times of natural or man-made disasters.

Public Goods and Public Transportation

The provision of public transportation as a public good by the government to facilitate mobility, reduce congestion, and promote sustainable transportation.

Public Goods and Parks and Recreation

The provision of parks and recreational facilities as public goods by the government to enhance the quality of life and promote physical and mental well-being.

Public Goods and Social Welfare

The provision of social welfare programs as public goods by the government to support individuals and families in need and reduce poverty.

Public Goods and Public Safety

The provision of public safety services as public goods by the government to maintain law and order, protect citizens, and prevent crime.

Public Goods and Disaster Preparedness

The provision of disaster preparedness measures as public goods by the government to minimize the impact of disasters and ensure the safety of citizens.

Public Goods and Energy Infrastructure

The provision of energy infrastructure as a public good by the government to ensure reliable and affordable energy supply for households and businesses.

Public Goods and Telecommunications

The provision of telecommunications infrastructure as a public good by the government to facilitate communication and promote connectivity.

Public Goods and Waste Management

The provision of waste management services as a public good by the government to ensure proper disposal of waste and protect the environment.

Public Goods and Water Supply

The provision of clean and safe water supply as a public good by the government to promote public health and ensure access to basic necessities.

Public Goods and Sanitation

The provision of sanitation services as a public good by the government to promote public health and ensure proper waste disposal and hygiene.

Public Goods and Housing

The provision of affordable housing as a public good by the government to ensure access to decent and secure housing for all individuals and families.

Public Goods and Social Infrastructure

The provision of social infrastructure, such as schools, hospitals, and community centers, as public goods by the government to support social well-being and community development.