This economics revision video looks at Public Goods.

VIDEO CHAPTERS
0:00 Introduction
1:01 Public Goods Definition and Characteristics
2:02 Free rider problem
3:43 Examples of Public Goods
4:23 Public vs Private Goods
5:15 Why public goods are financed by the government
7:15 Impact of Technological Change on Public Goods
8:13 Public Goods vs Private Goods vs Common Pool Resources vs Club Goods
9:23 Quasi-Public Goods
9:48 Free Rider Problem
10:44 Arguments for and against State Provision of Public Goods

VIDEO SUMMARY
Public goods are goods that are provided collectively, often financed collectively by the government. They have two key characteristics: non-rival consumption and non-excludability. Non-rival consumption means that one person's consumption of a public good does not reduce the amount available for others. Non-excludability means that it is difficult or impossible to exclude people from consuming a public good even if they haven't paid for it. Examples of public goods include sanitation infrastructure, flood defense projects, crime control, vaccinations, online learning, public service broadcasting, irrigation systems, and national parks.

Private goods are contrasted with public goods in the video. Private goods are excludable, meaning that the seller can prevent people who haven't paid for it from consuming it. Private goods are also rival in consumption, meaning that one person's consumption reduces the amount available for others. Private goods are typically priced in markets based on supply and demand. Examples of private goods include private gyms, exclusive clubs, tickets to events, exclusive restaurants, and tables at restaurants.

The video explains why public goods are financed by the government. There are three reasons. First, non-excludability makes it difficult to collect payments from everyone who benefits from a public good. Public funding through taxation ensures that everyone contributes to the funding. Second, collective financing through taxation can help to distribute the costs more equitably across the population. Third, the government can use tax revenue to achieve economies of scale in the provision of public goods

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