Micro 5

Question 1

Public goods

Answer 1

Goods that are non-excludable and non-rivalrous

Question 2

State provision of goods

Answer 2

Through taxation, the government provides public goods or merit goods which are underprovided in the free market

Question 3

Non- rivalry

Answer 3

A characterisitc of public goods; one person’s use of the good does not prevent someone else from using it

Question 4

Non- excludable

Answer 4

A characteristic of public goods; someone cannot be prevented from using the good

Question 5

Private goods

Answer 5

Goods that are excludable and rivalrous