In this lesson, our instructor Jibin Park gives an introduction on public vs. private goods. He discusses the characteristics of goods and the four types of goods: private goods, public goods, common resources, and artificially scarce goods.
Each good can be categorized as being either rival or nonrival
Each good is also categorized as being either excludable or nonexcludable.
Private goods are rival and excludable like pizza.
Public goods are nonrival and nonexcludable like national defense.
Common resources are rival and nonexcludable like a fish in a lake.
Artificially scarce resources are nonrival and excludable like pay-per-view television.
Generally, government gets involved in nonrival and nonexcludable goods whereas the free market works best in rival and excludable situations.
Public vs. Private Goods
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.