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For more information, please see full course syllabus of AP Microeconomics
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Lecture Comments (4)

1 answer

Last reply by: Professor Jibin Park
Wed Feb 14, 2018 1:28 PM

Post by Professor Jibin Park on February 14 at 01:27:45 PM

Mr. Park, would you be able to explain a little bit more about rival and non-rival?

1 answer

Last reply by: Professor Jibin Park
Thu Jan 29, 2015 11:53 AM

Post by Rebecca Dai on November 9, 2014

Why is health care nonexcludable? People without paying for the care cannot get the care. So why? Thanks

Public vs. Private 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.

  • Intro 0:00
  • Lesson Overview 0:10
  • Characteristics of Goods 1:53
    • Rival
    • Nonrival
    • Excludable
    • Nonexcludable
  • Four Types of Goods 5:08
    • Private Goods
    • Public Goods
    • Common Resource
    • Artificially Scarce Good
  • Private Goods 10:43
    • Rival and Excludable
    • Free-Rider Problem
    • Most Items are Private Foods
  • Public Goods 12:48
    • Nonrival and Nonexcludable
    • Suffers from the Free-Rider Problem
  • Common Resources 15:27
    • Incentive to Overuse
    • Tragedy of the Commons
  • Artificially Scarce Resources 18:47
    • Marginal Cost to Society Watching Pay-Per-View
    • Computer Software and Audio Files Share Same Characteristic
  • Healthcare and Government 22:02