Collective goods, also known as public goods, are resources that can be consumed simultaneously by a large number of consumers without diminishing their availability to others. Typical examples include streets and roads, police and fire protection, and national defense. Unlike market goods, collective goods cannot be efficiently priced or quantified based on market dynamics, hence they are generally provided by the government.
In economics, the Exclusion Principle refers to the right of an owner of private property to exclude others from using or enjoying it.
Infrastructure, also known as social overhead capital, refers to the essential goods and services that require significant investments and are critical for the effective functioning of an economy. This includes elements like roads, railways, sewerage, and electricity supply.
Public goods are products and services typically provided by the government because they are more effectively managed in the public domain rather than the private marketplace. Examples include national defense, police services, and public parks.
Public works are government projects designed for the public good and financed by public revenues. These projects include the construction of infrastructures such as dams, highways, schools, and government buildings.
Social overhead capital refers to the investment in infrastructure and services like education, healthcare, and transportation, whose productivity cannot be directly measured but play a crucial role in overall economic growth and societal well-being.
Spillover refers to the effects of economic activity or processes on individuals or groups who are not directly involved in the activity. These can be either positive or negative, impacting those who live or work nearby.
