AP Microeconomics Flashcards: Public and Private Goods
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Review key ideas with interactive flashcards. This set includes 11 cards to help you master important concepts.
What are the two defining characteristics of a public good?
Public goods are defined as being both non-rival and non-excludable.
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What are the two defining characteristics of a public good?
Public goods are defined as being both non-rival and non-excludable.
What is the economic consequence for open-access resources?
Private individuals tend to inefficiently overconsume open-access resources.
A wild fish stock is non-excludable, but each fish caught is one less for others (rival). What problem does this create?
As a non-excludable and rival resource, this is an open-access resource that private individuals will inefficiently overconsume.
What are the two defining characteristics of a private good?
Private goods are defined as being both rival and excludable.
What is the free rider problem?
The free rider problem is a situation where individuals lack the incentive to produce public goods because others can benefit without paying for them.
How do the traits of rivalry and excludability influence economic behavior?
The nature of whether a good is rival and/or excludable influences the behavior of individuals and groups.
What are the characteristics of an open-access resource?
Open-access resources are, by their nature, non-excludable and rival.
What is an example of a private good that a government might provide for free?
Governments sometimes choose to produce private goods, such as educational services, and allow free access to them.
What two characteristics are used to define whether a good is public or private?
Goods are defined based on whether they are rival and/or excludable.
Which type of good is most likely to be overconsumed?
Open-access resources, which are non-excludable and rival, are inefficiently overconsumed by private individuals.
Why does the government typically produce public goods?
Due to the free rider problem, private individuals usually lack the incentive to produce public goods, leaving the government as the only producer.