What is it in the economy?

From an economic point of view, public goods are produced by good or service that is widely available to consumers. When defining public welfare, the item will usually be referred to as non -kicks, non -exclusive or both. Identification of items as public goods is usually for the purposes of analysis because it is very difficult to find goods created to sell to consumers who do not correspond to these criteria.

When the public welfare is reportedly obvious that it is not kicks, it simply means that the item remains widely available for consumption by all consumers, even if one consumer has been involved in goods consumption. Straight goods can be considered easily renewed or so abundant that the consumption of one consumer in no way prevents the consumption from other. An example would be the ear of corn selected from the cornfield. While one ear has been consumed, there are still many other corn ears available for consumption.

Public goods are also often classified as a non -explainedIt means that almost anyone can use good, which basically makes the public good universal. Public services are a good example of non -exclusive goods, because anyone can benefit from the presence of police forces or fire brigade regardless of their condition or economic status.

There are several basic examples of products that do not meet the basic definition of public goods. One has to do with the acquisition of professional services, such as a doctor or lawyer. When the individual arranges a meeting with one of these experts, he buys the time of this professional. At the same time, it cannot be consumed by any other individual, so the duration of the appointment excluded and competed. Similarly, many drugs are limited in terms of consumer access, and some require a medical professional prescription. The fact that some are excluded from access toThese medicines mean that drugs of this type are considered exclusive and rival, and therefore not public good.

Over time, technological advances have created new types of public goods. Electric driven street light is an example of public goods that have become common in the first years of the twentieth century. Because his light was available to anyone who could enjoy when they walked down the street, the device met the criteria that it was indestructible and uncommon. Today, products such as software packages are often classified as public goods. This is especially true for products such as free software that is widely available to anyone who wants to use it, without obstacles to costs, or economics to prevent consumption.