Question

for each of the following, first determine whether the good is rivalrous or nonrivalrous and whether it is excludable or nonexcludable. then identify the good as a private or a public good a pair of jeans? an empty public highway late at night? a congested toll road during the day? a firework display at the park? fruits sold at a grocery store/ apples on a tree in private orchard?

Answer 1

Public good is a good which are non-rival and non-exclusive in nature. Non-rival means consumption of the public good by one person does not reduce its amount available for the other person. Non-exclusion means if public good has been provided then it does not possible to exclude one person from consuming it.

Private good is a good which is rival and excludable in nature. Rival means consumption of good by one person decreases availability of good for the other.

1) Pair of jeans - Rivalrous and Excludable

The good is private.

2) Empty public highway late at night - Nonrivalrous and Nonexcludable

The good is public.

3) Congested toll road - Rivalrous and Excludable.

The good is private.

4) Firework display at the park - Nonrivalrous and Nonexcludable

The good is public.

5) Fruits sold at grocery store/apples on tree - Rivalrous and Excludable

The good is private.