Free-rider problemIn economics, the free-rider problem is a type of market failure that occurs when those who benefit from resources, public goods and common pool resources do not pay for them or under-pay. Free riders may overuse common pool resources by not paying for them, neither directly through fees or tolls, nor indirectly through taxes. Consequently, the common pool resource may be under-produced, overused, or degraded.
Service (economics)A service is an act or use for which a consumer, company, or government is willing to pay. Examples include work done by barbers, doctors, lawyers, accountants, mechanics, banks, finance, insurance companies, and so on. Public services are those that society (nation state, fiscal union or region) as a whole pays for, such as hospitals, elementary schools, or libraries. Using resources, skill, ingenuity, and experience, service providers give benefit to service consumers.
Rivalry (economics)In economics, a good is said to be rivalrous or a rival if its consumption by one consumer prevents simultaneous consumption by other consumers, or if consumption by one party reduces the ability of another party to consume it. A good is considered non-rivalrous or non-rival if, for any level of production, the cost of providing it to a marginal (additional) individual is zero. A good is anti-rivalrous and inclusive if each person benefits more when other people consume it.
Market failureIn neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value. The first known use of the term by economists was in 1958, but the concept has been traced back to the Victorian writers John Stuart Mill and Henry Sidgwick.
ResourceResources are all the materials available in the environment which are technologically accessible, economically feasible and culturally sustainable and help to satisfy needs and wants. There are many types of resources, which can broadly be classified according various parameters, such as their availability as renewable or non-renewable resources or national and international resources. An item may become a resource with technology.
Consumption (economics)Consumption refers to the use of resources to fulfill present needs and desires. It is seen in contrast to investing, which is spending for acquisition of future income. Consumption is a major concept in economics and is also studied in many other social sciences. Different schools of economists define consumption differently.
EconomicsSocial science studying goods and servicesEuro coinsEconomics () is a social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as the basic elements of economies, including individual agents and markets, their interactions, and the outcomes of those interactions.
Paul SamuelsonPaul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "has done more than any other contemporary economist to raise the level of scientific analysis in economic theory". Samuelson was one of the most influential economists of the latter half of the 20th century.
Public goodAids to navigation such as lighthouses are often used as an example of a public good, as they benefit all maritime users, but no one can be excluded from using them.In economics, a public good (also referred to as a social good or collective good) is a commodity, product or service that is both non-excludable and non-rivalrous and which is typically provided by a government and paid for through taxation.
Richard Musgrave (economist)Richard Abel Musgrave (14 December 1910 – 15 January 2007) was an American economist of German heritage. His most cited work is The Theory of Public Finance (1959), described as "the first English-language treatise in the field," and "a major contribution to public finance thought." BiographyEarly lifeMusgrave was born in Königstein im Taunus, Germany, into the family of a writer and translator Curt Abel Musgrave, a chemist by profession.
GoodsIn certain economic contexts, goods are anything that is good, usually in the sense that it provides welfare or utility to someone. Goods can be contrasted with bads, i.e. things that provide negative value for users, like chores or waste products. A bad lowers a consumer's overall welfare. Economics focuses on the study of economic goods, i.e. goods that are scarce; in other words, producing the good requires expending effort or resources.
Garrett HardinGarrett James Hardin (April 21, 1915 – September 14, 2003) was an American ecologist, microbiologist, and white nationalist best known for the concept of the tragedy of the commons. Hardin focused his career on human overpopulation, holding anti-immigrant and racist positions on race and eugenics. In 1968, Hardin wrote a paper titled "The Tragedy of the Commons" in Science about "the damage that innocent actions by individuals can inflict on the environment."*As an Amazon Associate I earn from qualifying purchases.