Question

I have to write an 4 pg analysis paper on any topic dealing with public and private goods and its for my microecon class. Can you please write me an outline of an essay and points I should hit.

Answer 1

Public and private goods :

1) public goods are non rival and non excludable . private goods are both rival and excludable

2) There are spill over effects in public goods , no spill over effects private goods .

3) Public good are not provided by the private producers . Public goods must be provided by the government because of their unique properties of being non-rivalry and non-excludable prevents the emergence of a market for these goods. Yet the nature of these goods is such that they satisfy a collective need of the society and is beneficial to the economy at large.

4) There is a free rider problem in case of public goods . Private goods are excludable and rivalrous , so no free rider problem .