Public Goods | A-Level Economics Notes

These revision notes cover everything you need to know about Public Goods for A-Level Economics. They're designed for students studying AQA A-Level Economics, Edexcel A-Level Economics, and Edexcel International A-Level Economics. Written by Jaisul Naik, UCL Economics graduate and A-Level Economics tutor since 2017.


What are public goods?

Public goods are non-rival and non-excludable.

What is non-rivalry?

A good is non-rival if it can be used again by another consumer with the same benefit.

For example, if I stand under a street lamp I would not be reducing the light for another person.

However, if I take some chocolate from a chocolate fountain, there is less left for the next consumer.

What in non-excludability?

A good is non-excludable if it is impossible to prevent someone from accessing it.

For example, it is impossible to block someone from standing near a street lamp.

What is the free-rider problem?