What are public goods?

Public goods are defined as resources or services that are made available to all members of society and are typically funded by the government. These goods are characterized by two main features: they are non-excludable, meaning that individuals cannot be effectively excluded from using them, and they are non-rivalrous, indicating that one person's use of the good does not diminish the ability of others to use it as well.

Examples of public goods include national defense, public parks, and clean air, which benefit society as a whole without direct payment from each user. This contrasts sharply with goods that are exclusive or limited to certain groups, which fail to meet the criteria of accessibility and shared benefit that public goods embody. Thus, the correct definition emphasizes the role of government in providing these goods which are essential for the welfare of society, as they might not be adequately supplied by the private market alone.