Economics Public Goods Questions
The main difference between a public good and a private good lies in their characteristics and the way they are consumed.
A public good is non-excludable, meaning that once it is provided, it is available for everyone to consume, and it is difficult to exclude anyone from benefiting from it. Additionally, a public good is non-rivalrous, which means that one person's consumption of the good does not diminish its availability for others. Examples of public goods include national defense, street lighting, and public parks.
On the other hand, a private good is excludable, meaning that it can be restricted to certain individuals who have paid for it or meet certain criteria. Private goods are also rivalrous, as one person's consumption of the good reduces its availability for others. Examples of private goods include food, clothing, and cars.
Overall, the key distinction between public goods and private goods lies in their excludability and rivalry characteristics, determining how they are consumed and who can benefit from them.