Introducing
Your new presentation assistant.
Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.
Trending searches
Classification of goods and services
1
Private goods
- Rival : When one person consumes a product, it reduces the quantity available to others.
- Excludable : A producer can exclude consumers from using a particular product by changing a price for a product.
For example,
Food, airplane rides and cell phones
Demerit goods
- It is a product which is like a private good, has the characteristic of being rival and excludable.
- If provided in a market economy, would be likely to be over-consumed and over-produced.
- Individuals may not be aware of the potential damage to themselves and to the wider society of such over consumption.
- Examples : cigarettes and alcohol.
- Governments may decide to discourage the consumption of such products
Public goods
- Non rival : It does not reduce the extent of its availability to other people
- Non excludable : It is not possible to exclude any person from it use
- Non rejectability : certain public goods cannot be rejected eg. a police force; everybody in a society would benefit from the existence of a police force.
For example,
clean air, national defense, the judiciary, lighthouses, street lights