Question

Define Public goods. Why is it that the provision of public goods is problematic under collective action? (not less than 1000 words)

Answer 1

Public goods refers to the commodity or services provided to the all members of the society without profit , either by the Goverment, individual , Private organisations etc

Public goods are non - excludable and non -rival

Non -excludable :- Non-excludable goods is a  public goods. Everyone has right to use them, and their use does not deplete/reduce their availability for future use /future purpose . that cannot exclude a particular person or group of persons from using such public or non exludable goods. As a result, restricting access to the consumption of non-excludable goods is not possible at all i.e nearly impossible.

For example public road

Non-rivalrous goods are also a public goods. Everyone has right to use them, and their use does not deplete/rrreduce heir availability for future use. that are consumed by people, but the supply of non rivalrous good is not affected by people's consumption.

Lets see one of the example of non-rivalrousgoods is a television show.

A collective action probelm refers a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals and that conflict discourage joint action.

when return for their tax contribution, those who pay taxed enjoy the benefits of thesepublic goods , When a group is too huge/large or the benefits of colective action / together  are not tangible to individual members then the  collective action problem results, lack of cooperation and this lack of c ooperation makes the provision of public goods is difficult.