Public Goods Lesson

Private goods are rival and excludable, and public goods are non-rival and non-excludable. Due to the free rider problem, private individuals usually lack the incentive to produce public goods, leaving government as the only producer. Governments sometimes choose to produce private goods, such as educational services, and to allow free access to them. Some natural resources are, by their nature, non-excludable and rival and therefore open access. Private individuals inefficiently overconsume such resources.

Public Goods Video

View the video below to learn more about public goods. To make the video full screen, select the double arrows at the bottom right corner of the object.

Characteristics of Public Goods Review

Test your knowledge by completing the activity below.

Market Failures, Taxes and Subsidies Video

View the video below to learn more about market failures, taxes, and subsidies. To make the video full screen, select the double arrows at the bottom right corner of the object.

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