Public Goods and Market Failure (Revision Quizlet Activity)

Here is a Quizlet revision activity covering key terms on the topic of public goods and market failure

Key Terms to Revise

Club goods: Goods that are excludable but not rival in consumption e.g. streamed video online

Common pool resources: Goods that are available to everyone, but one user's consumption reduces the amount available for others

Cooperation: Participating in a common project that is intended to produce mutual benefits.

Excludability: Property of a good where a person can be prevented from using it if they do not pay

Free rider: When we benefit from consuming a product without contributing to the cost of supply

Global public bad: Something with severe negative externalities on communities leading to a loss of social welfare

Global public goods: Public goods that benefit every country, irrespective of which ones provide them

Marginal cost: The cost of producing one more unit of a good or service

Market failure: When markets allocate resources in a socially-inefficient way.

Missing market: Occurs when the private sector fails to provide certain products at all

Non-excludability: When benefits from pure public goods cannot be confined solely to those who have paid

Non-rivalrous: When consumption of a good by one person does not reduce the amount available for others

Private good: A good that is both rival, and from which others can be excluded.

Quasi public good: A near-public good which is at times semi-rival and semi-excludable

Tragedy of the commons: When no one owns a resource, it may get over-used, for example fish stocks