IB Economics Topic 2.9.1 Public Goods Revision Notes (SL/HL)

IB Economics Topic 2.9.1 Public Goods Revision Notes (SL/HL) | RevisionDojo

Written by official IB examiners

Definition

Public Good

A good that is both non-rivalrous and non-excludable at the same time.

Public goods are goods that are essentially:

Non-Rivalrous: When the consumption of a good by one individual, does not reduce the consumption of that same good for another individual.
Non-Excludable: When no one can be excluded from utilising that good.

Example

Examples of public good include lighthouse, national defence, etc.

The lighthouse, for example, is a classic public good because its light can be used by one ship without reducing the amount available for other ships, and no ship can be excluded from benefiting from it.
Similarly, national defence is a public good because it provides equal protection to everyone, where no one is receiving more or less protection, and no one is being excluded from its benefits.

Common Mistake

Students often assume public goods are simply those provided by the government.
While governments frequently supply public goods, the defining characteristics are non-rivalry and non-excludability, not the provider.

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Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Duis aute irure dolor in reprehenderit

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit.

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

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Definition

Public Good

A good that is both non-rivalrous and non-excludable at the same time.

Public goods are goods that are essentially:

Non-Rivalrous: When the consumption of a good by one individual, does not reduce the consumption of that same good for another individual.
Non-Excludable: When no one can be excluded from utilising that good.

Example

Examples of public good include lighthouse, national defence, etc.

The lighthouse, for example, is a classic public good because its light can be used by one ship without reducing the amount available for other ships, and no ship can be excluded from benefiting from it.
Similarly, national defence is a public good because it provides equal protection to everyone, where no one is receiving more or less protection, and no one is being excluded from its benefits.

Common Mistake

Students often assume public goods are simply those provided by the government.
While governments frequently supply public goods, the defining characteristics are non-rivalry and non-excludability, not the provider.

Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

1. Introduction to Economics2 subtopics

2. Microeconomics12 subtopics

3. Macroeconomics7 subtopics

4. The Global Economy10 subtopics

IB Economics 2.9.1 Public Goods Notes

1. Introduction to Economics2 subtopics

2. Microeconomics12 subtopics

3. Macroeconomics7 subtopics

4. The Global Economy10 subtopics

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account