Question

Use the following classification to determine which category each of the following goods falls into.

  

GoodsPrivate GoodClub GoodCommon ResourcePublic Good

Snow plowing of public streets immediately after a heavy snowfall

Local street lighting

Museums that require admission fees

Congested city streets

Flu vaccine

Answer 1

Public Goods - No rivalry in consumption and non excludable

Private Goods - rivalry in consumption and excludable

Club Goods - No rivalry in consumption but excludable

Common Resource - rivalry in consumption but no excludability

Snow plowing of public streets immediately after a heavy snowfall - When public steets will be cleared of snow, the benefit will be received by every citizen wanting to use the street. There is no excludability and no rivalry as use of clear street by one citizen will not hinder use of the same street by another citizen. Hence Public Good

Local street lighting - This is also a public good because any individual passing by the street can see using the street light at night. No one can be excluded on any grounds. No one's use of the street light can hamper another passer bys use of the street light. Hence non rivalry and non excludable.

Museums that require admission fees - Without fees one will not be allowed to enter. Hence without fees, one will be excluded from the experience of the museum. However once one has paid the fees and entered the museum that person can experience the artifacts in the museum without any rivalry. Everybody who has entered can freely experience the place, hence non rivalry in consumption. So this is a Club good.

Congested city streets - City streets is for everyone who wants to use it and none can be excluded. However a congested street creates problems for the commuters because of extra time wasted due to congestion. hence in a congested street there is rivalry in consumption. People at the start of the congestion will pass by the street before the ones stuck in the middle and end of the congestion. Hence this is a Common Resource.

Flu vaccine- A flu vaccine is something every individual receives from the government/organization involved in order to stop the infection from spreading. No individual is excluded from its use. No rivalry also exists as everybody wants the society to be free of the flu. So vaccine is a publuc good.