Given an example state the difference between public goods and private goods four examples
Public goods are goods that are non-excludable and non-rivalrous, meaning that they are available to all individuals and consumption by one individual does not diminish the amount available to others. Private goods, on the other hand, are excludable and rivalrous, meaning that they can only be consumed by those who pay for them and consumption by one individual reduces the amount available to others.
Examples of public goods:
1. Street lighting: Once provided, everyone in the community benefits from street lighting and one person's use of it does not diminish its availability to others.
2. National defense: The protection provided by the military benefits all citizens and cannot be excluded to only those who contribute financially.
3. Public parks: Parks that are free to use and open to all members of the community are considered public goods because many people can enjoy them simultaneously without reducing their availability to others.
4. Air quality: Clean air is a public good because it is available to all individuals and use by one person does not decrease its availability to others.
Examples of private goods:
1. Clothing: Clothing is a private good because it is excludable (only those who purchase it can wear it) and rivalrous (use by one person depletes its availability to others).
2. Food: Food is a private good because only those who purchase it can consume it, and once eaten, it cannot be consumed by others.
3. Cars: Cars are private goods because ownership is limited to those who purchase them, and use by one person reduces their availability to others.
4. Electronics: Items such as smartphones and laptops are considered private goods because ownership is exclusive to those who buy them, and use by one person limits their use by others.