Question

In 2018, there was an outbreak of malaria in South Africa. People obtained information from

hospitals, radio broadcasts, cell phone services and notices posted by the roadside on how to

prevent the disease from spreading. How can these sources of information to be classified (public or

private goods)? Explain your classification

Answer 1

Ans: These sources of information can be classified as below

Hospitals: Private goods (as it is excludable and rival which means one can be excluded from the information and also to a certain level it is rival)

Radio broadcast: Public good ( it is nonexcludable and non-rival which means if one hears the announcement, this will not decrease someone else's benefit, similarly it cannot exclude its participants)

Cell phone services: Private Good (same reason as mentioned above)

Notices: Public good (same reason as mentioned above)