In general, psychological health refers to mental health. It is more than just the absence of any illness. It refers to having healthy thoughts and feelings. It refers to the ability of a person to communicate with others in an effective manner and do not feel the urge to isolate himself from others. Psychological health refers to the social well being of a person. A person should realize that mental health is as important as physical health.
1) you want to include everyone in a public good/service however if you are planning to exclude non payers then that is not public anymore as public is open to everyone, regardless of ability to pay.
