Question

5. Explain why the following are not public goods: a. a college education at a state university b. Yellowstone National Park, and, c. the services of your local fire department.

Answer 1

a. A college university at state university is rivalrous since the possibility of you getting admission reduces the possibility of somebody else getting admission since there are limited seats. It is excludable also as admission is only on the basis of merit.

b. Yellowstone national park is rivalrous as only limited people can visit the national park at a given time. It is excludable since we need to pay an entry fee.

c. The services of local fire department are excludable as they cater to the needs of local people only and somebody from a different state cannot avail its services. It is rivalrous in case multiple fire breaks out in the city and there are limited resources.