Question

Provide two examples of goods/services that are classified as private goods/services even though they are provided by a local, state or federal government.

Answer 1

The goods which are public in nature but exhibit partial excludability and partial rivalry are classified as private goods. For eg. Expressway can be considered as private goods though they are constructed by government by private enterprises and they get the right to collect the total cost of money within a alloted time period from the commuters by establishing toll gates. So though expresseway is provided by government it can be said as private goods.

Airline services are also can be categorised as goods though they are provided by the government. It is the government who formulates rules and regulations for the airlines services, the actual service is provided by private companies who own their flights and hire their employees. People need to pay higher prices to avail the services. Breaking or disrespecting any rules might lead the government to take stricter action against them. So it can be also considered as private services.