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Note that your final mark will not be saved in the system.
Market failure GapFill
Target Level
C
Running Total
0
0%
Attempt
1 of 3
You must fill all the gaps before clicking ‘Check Answers!’
Public goods such as defence, lighthouses and flood control systems possess two distinct characteristics of
and non-rivalry in
. Consumption by any additional user does not
the amount of the good available to others. Non-exclusivity means that we cannot separate payers from
. Thus there is a
rider problem. The
cost of an additional consumer is zero.
gaps occur when either
or sellers have incomplete, uncertain or inaccurate information. It is sometimes called information
.