This video discusses public goods in economics. A public good is any good that is both nonrivalrous and nonexcludable. Nonrivalrous means the marginal cost of providing the good to an extra person is zero. National defense is nonrivalrous; it costs nothing for the United States military to defend the country, for example, if one extra person immigrates to the United States. Nonexcludable means it is impossible to prevent someone from enjoying the good. Clean air is nonexcludable- once it has been provided, there is no way to exclude people from enjoying it. This leads to the free rider problem: people don't want to pay for something if they think it will be provided anyway and there is no way others can prevent them from enjoying it. One solution is for the government to provide the public good and then tax people to pay for it.

This video was funded by a Civic Engagement Fund grant from the Gephardt Institute for Civic and Community Engagement at Washington University in St. Louis.—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
*  / prof_mclaughlin  
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast...
* Spotify: https://open.spotify.com/show/4WaNTqV...
* Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
*   / prof_mclaughlin  
—
ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
* Facebook:   / edspira  
* Instagram:   / edspiradotcom  
* LinkedIn:   / edspira  
—
CONNECT WITH MICHAEL
* Twitter:   / prof_mclaughlin  
* LinkedIn:   / prof-michael-mclaughlin  
—
ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
* https://michaelmclaughlin.com