Non Excludable Good Example
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What is Non-Excludable Good?
Non-excludable goods or public goods are those that people cannot be excluded from enjoying their benefits. These products can only be enjoyed when they are produced, and their use does not diminish the ability to produce more for others to enjoy later.
Non-excludable goods are an economic concept used to describe those products that one cannot exclude people from taking once they have been provided with the good. The market for non-excludable goods is known as a public good, and there are several ways of providing this type of product.
The best example of these types of goods is national defense. Once it’s been built, the entire public can enjoy it without diminishing its usefulness in any way for future users.
Excludable and Non-Excludable Good
What are the differences between excludable and non-excludable goods?
Excludable goods, also known as private goods, can be excluded from the use of a person or group. This means that if a producer wants to exclude someone from using their goods, they can do so by charging an additional price for it.
Non-excludable goods are public things such as water and air that cannot be kept within one group’s hands through exclusion because there is no way to charge people for its use.
A prime example of an excludable product is cable television service, which requires a monthly fee to view the offers’ channels. The opposite of this would be something like oxygen which we all require access to.
Excludable good is those goods that you can choose not to avail of. There is no penalty for declining an excludable good.
Non-excludable services are those you have no choice but to partake in, like taxes. Non-excludable services usually entail fines if one does not comply or meet the government’s requirements, such as paying taxes on time and accurately.
Check Related: Non-Rivalrous Goods Examples
Non Excludable Good Example
- Education
- Healthcare
- Parks and playgrounds
- A public library
- Police protection and law enforcement services
- Public schools and education programs for children, adults, or the elderly
- Roads and highways that connect communities to one another
