Question

Public goods tend to be ones that are Non-Rival and Non-Excludable in consumption. Explain what the...

Public goods tend to be ones that are Non-Rival and Non-Excludable in consumption. Explain what the characteristics imply and provide an example of each in your discussion.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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. For example National defense, public park, street light etc. Non-exclusion means if public good has been provided then it does not possible to exclude one person from consuming it. In fact it will be Pareto inefficient to exclude one person because if that person is allowed to consume then he may be better off but other are not worse off. As a result of non-rival and non-exclusion, property there is problem of free rider and due to free rider market fails.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain briefly what we mean by “non-excludable” and “nonrival” in the context of public goods. Give...
Explain briefly what we mean by “non-excludable” and “nonrival” in the context of public goods. Give one example of a public good that only partially satisfies each.
Give an example of a public good that you personally value. Explain how it is non-rival...
Give an example of a public good that you personally value. Explain how it is non-rival and comment on the degree to which it is non-rival. Explain how it is non-excludable and comment on the degree to which it is non-excludable. (125 word limit)
Which of the following goods is excludable but not rival in consumption? a. a congested toll...
Which of the following goods is excludable but not rival in consumption? a. a congested toll road b. fire protection in a small town c. a tornado siren d. whales in the ocean
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.
Both public goods and common resources are a. nonexcludable. b. excludable. c. nonrival in consumption. d....
Both public goods and common resources are a. nonexcludable. b. excludable. c. nonrival in consumption. d. rival in consumption. When the absence of property rights causes a market failure, the government can potentially solve the problem a. by clearly defining property rights. b. through regulation. c. by supplying the good itself. d. All of the above are correct.
True or False? And why? a. All situations that involve non-excludable goods must lead to negative...
True or False? And why? a. All situations that involve non-excludable goods must lead to negative externalities. b. Engineering costs always underestimate the true social costs of a particular regulation c. For a freely provided public good, a consumer’s willingness to pay for a small increase in the good or willingness to accept payment for a small decrease in the good will provide approximately the same value for the change in consumer surplus.
Generate the following 2x2 grids: Don’t forget to label columns/rows in your grids A grid providing...
Generate the following 2x2 grids: Don’t forget to label columns/rows in your grids A grid providing an example of each a positive and negative consumption and production externality A grid identifying the good type and an example of all combinations of rival (and non) and excludable (and non) goods.
True or False a. All situations that involve non-excludable goods must lead to negative externalities. True...
True or False a. All situations that involve non-excludable goods must lead to negative externalities. True or False b. Engineering costs always underestimate the true social costs of a particular regulation True or False c. For a freely provided public good, a consumer’s willingness to pay for a small increase in the good or willingness to accept payment for a small decrease in the good will provide approximately the same value for the change in consumer surplus.
( 7 ) What are " public goods " ? Define the characteristics , using examples...
( 7 ) What are " public goods " ? Define the characteristics , using examples . As we discussed in class , the existence of externalities creates an efficiency problem in the provision of these goods and services Unlike the private sector , State and Local Governments are able to intervene . Using the example of public goods you have provided , please provide an example of an externality that will impact it's provision , and detail how a...
A public good has a marginal cost of $100 per unit. There are four people in...
A public good has a marginal cost of $100 per unit. There are four people in the population who have marginal private benefits from the public good given by 50−Q, 100−3Q, 25−Q, and 65 − 2Q respectively. a) What is the efficient amount of the public good? Explain your answer, and explain what makes this different from a private good. b) If you didn’t know how each consumer valued this public good, what issues might you run into if you...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT