मुद्रा की तटस्थता | Neutrality of Money | Classical Dichotomy | UGC NET Economics
Channel: MAHAVIDYA ECONOMICS SCHOOL
Date: 2023-03-08

Classical Dichotomy Definition
Classical dichotomy is a view of classical economics that presumes that output, employment, and other such factors which are termed real variables, must be independent of financial variables.

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Public Goods and Market Failure 
public goods are those goods that are non-rival and non-excludable. (National Defense, parks, pollution control, police and fire protections) 
1. Non-rival: A good is non-rival in consumption when two persons can consume the same thing. one person's consumption of it does not interfere with the consumption of it by some other person
2. Non-excludable: A good is non-excludable when once produced, people who do not pay for it cannot be excluded from enjoying its benefits.
3. Non-rejectable: We cannot choose not to consume them they are non-rejectable