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Public Good
A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use, and one individual's use does not reduce availability to others.
Asymmetric Information
A situation where one party to a market transaction has much more information about a product or service than the other. The result may be an under- or overallocation of resources.
Inefficient Outcomes
Situations where resources are not allocated optimally, resulting in potential losses in economic welfare.
Allocative Efficiency
A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, often achieved when marginal cost equals marginal benefit.
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