What type of goods are provided by the government because private firms do not find it profitable to produce them?

Public goods are defined by two main characteristics: they are non-excludable and non-rivalrous. This means that once they are provided, individuals cannot be excluded from using them, and one person's use of the good does not reduce its availability for others. Common examples include street lighting, national defense, and public parks.

Private firms often do not find it profitable to produce public goods because they cannot easily charge users, leading to the likelihood of underproduction if left solely to the market. Therefore, governments step in to provide these goods to ensure that society has access to essential services that are beneficial for all but would not be supplied adequately by private enterprises.

Merit goods are those which the government believes will be under-consumed if left to the private market, but they differ from public goods as they can still be excludable and rivalrous. Private goods are those produced in the market that are both excludable and rivalrous, typically provided by private firms. National goods is a less common term and does not specifically capture the characteristics that distinguish public goods.