Question

Where should each of these goods be in the spectrum from pure public goods to pure private goods? Explain why each is or is not a pure public good. Where applicable, note instances where the good is both publicly and privately provided:

a. College education

b. A local park

c. Yosemite National Park

d. Sewage collection

e. Water

f. Electricity

g. Telephone service

h. Retirement insurance

i. Medicine

j. Police department

k. TV l. Basic research

m. Applied research

Answer 1

Public goods are non rivalrous and non excludable. Private goods are rivalrous and excludable. Quasi public goods are non riavlrous but excludable eg. Toll road. Common access resources are non excludable but rivalrous. Eg. Common pond for fishing in a village.

a. College education: both publicly and privately provided. State and private universities present.

b. A local park: Public good

c. Yosemite National Park: Public good.

d. Sewage collection: Public good.

e. Water: public good

f. Electricity: public good

g. Telephone service: private

h. Retirement insurance: both publicly and privately provided. State and private insurance comapnies.

i. Medicine: privately provided.

j. Police department: Pure public.

k. TV : Pure private

l. Basic research: both publicly and privately provided. Both can fund.

m. Applied research: both publicly and privately provided. Both can fund.