What is the difference between public goods and externalities?

Public goods are non-excludable and non-rival - i.e. you cannot be stopped from consuming the good and this does not affect others' consumption
Externalities are benefits/costs to a third party outside the market transaction
A public good such as knowledge could have positive externalities, but they are not the same thing

NS
Answered by Nicholas S. Economics tutor

2560 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain the difference between Long Run Total Costs and Short Run Total costs


How can changes in the interest rate affect aggregate demand?


Explain the factors influencing short run and long run aggregate supply


Evaluate policies which a UK government could use to control the activities of oligopolists.


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