What are public goods?

Public goods are defined as commodities that are available to all individuals without exclusion, typically funded by the government. These goods are characterized by two key properties: non-excludability and non-rivalry. Non-excludability means that when a public good is provided, it is not possible to prevent anyone from accessing it, while non-rivalry indicates that one person's use of the good does not diminish its availability for others.

Examples include national defense, public parks, and street lighting. Because these goods benefit the whole community and are not provided through the market mechanism (as they wouldn't be profitable for private entities to supply), governments often step in to fund and provide them. This ensures that everyone has access regardless of their ability to pay, addressing market failures associated with the provision of such goods.

The other options describe different types of goods or services that do not align with the concept of public goods. Goods produced for private consumption refer to items that are not shared among the public and are typically for individual use. Services provided exclusively to paying clients are based on a model of exclusion and competition, which is contrary to the nature of public goods. Finally, items owned exclusively by the state could occupy a similar space but do not necessarily imply that they are accessible to