| Term | Definition |
|---|
| public good | a shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude those who did not pay |
| public actor | the part of the economy that involves the transactions of the government |
| private sector | the part of the economy that involves the transactions of individuals and businesses |
| infrastructure | the basic facilities that are necessary for a society to function and grow |
| free rider | someone who would not be wiling to pay for a certain good or service but who would get the benefits of it anyway if it were provided as a public good |
| market failure | a situation in which the free market, operating on its own, does not distribute resources efficiently |
| externality | an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume |
Combine with other sets
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