Compare and contrast private goods and public goods.

Then identify at least 4 of each of these types of goods (4 public goods and 4 private goods).

Public goods are available free of cost in the economy. The public goods are non-excludable. The availability of public good does not get reduced with the consumption by some other individual.

On the other hand, to consume private goods, consumers have to pay, it is not free. Different types of consumers are excluded from having private goods. The availability of private goods gets reduced with the consumption by some other individuals. These type of goods are produced and traded by the private or individual entities so that the demand of the consumer is satisfied.

Both private and public goods play an important role in the well being of persons. Private goods meet the needs of buyers, promotes trade, and economic development. Public goods avail vital amenities that enhance the quality of life.

Examples of public goods are fresh air and water, light in the street, disaster control measures, and national defence.

Examples of private goods are-food, cloth, parking spaces in malls, and internet service.