, ECS3704 Assignment 1 (COMPLETE ANSWERS) Semester
1 2025 - 2025; 100% correct solutions and explanations.
Public and Private Goods: A Comparative Analysis
1. Introduction
The classification of goods into public and private is essential in
understanding how resources are allocated in an economy.
Public goods, such as national defense and public parks, are
non-excludable and non-rivalrous, meaning their consumption
does not reduce their availability to others. Private goods, such
as food and clothing, are excludable and rivalrous, meaning only
those who pay for them can consume them. However, some
goods, such as higher education, possess characteristics of both
public and private goods and are categorized as mixed goods or
quasi-public goods. This paper provides a comparative analysis
of public and private goods in table format and discusses the
nature of mixed goods with a focus on higher education.
2. Comparison of Public and Private Goods
The table below provides a comparative analysis of public and
private goods based on key economic characteristics.
Characteristic Public Goods Private Goods
Goods that are non- Goods that are
Definition excludable and non- excludable and
rivalrous. rivalrous.
Excludable – access
Not excludable –
Excludability is restricted to those
individuals cannot be
who pay.
1 2025 - 2025; 100% correct solutions and explanations.
Public and Private Goods: A Comparative Analysis
1. Introduction
The classification of goods into public and private is essential in
understanding how resources are allocated in an economy.
Public goods, such as national defense and public parks, are
non-excludable and non-rivalrous, meaning their consumption
does not reduce their availability to others. Private goods, such
as food and clothing, are excludable and rivalrous, meaning only
those who pay for them can consume them. However, some
goods, such as higher education, possess characteristics of both
public and private goods and are categorized as mixed goods or
quasi-public goods. This paper provides a comparative analysis
of public and private goods in table format and discusses the
nature of mixed goods with a focus on higher education.
2. Comparison of Public and Private Goods
The table below provides a comparative analysis of public and
private goods based on key economic characteristics.
Characteristic Public Goods Private Goods
Goods that are non- Goods that are
Definition excludable and non- excludable and
rivalrous. rivalrous.
Excludable – access
Not excludable –
Excludability is restricted to those
individuals cannot be
who pay.
