Question

Why won’t private individuals voluntarily pay for public goods? Since public goods are  (Click to select)  non-essential  popular  non-excludable  low-quality  , once...

Why won’t private individuals voluntarily pay for public goods?

Since public goods are  (Click to select)  non-essential  popular  non-excludable  low-quality  , once they are created, non-contributors can’t be prevented from using them; and since public goods are  (Click to select)  unwanted  non-rival  rival  free  , non-contributors will get to enjoy these goods if someone else provides them.

Homework Answers

Answer #1

The answer to the two blanks will be non excludable and non rival

Because public goods are non excludable, it simply means that one individual cannot be prevented from the use of a public good. This encourages the individual to continue to free ride or not pay for using the public good.

At the same time public goods are non rival which means that there is no ownership right once the price is paid. Therefore non contributors continue to enjoy the public good without paying for that.

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