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 ▸

What two policies can the government employ to influence economic growth and inflation?


What is diminishing marginal utility?


What impact would a cut in the base rate by the Bank of England have on Aggregate Demand?


What is an inferior good