Paper 1 tomorrow

The basic economic problem is unlimited wants yet limited resources, it is based on consumers acting in their self-interest as consumer behavioural says within bounded rationality, and tend to over-use publics goods specifically. This leads to the problem of over-using goods and services and essentially degrading them whilst its free because its non rivalrous and non excludable as a public good. Take air for example, no one has property rights over it whilst firms tend to over-produce demerit goods that yield negative externalities in production; therefore the over-production of goods can cause this 'free rider problem' linked to the basic economic problem.

what is a public good, is it like public transport or public education