Question

Which of the following are or are not public goods and why? (only short answers required)

a. Wilderness areas

b. Prisons

c. Peace keeping in Sudan

d. Public television programs

e. A web site on the Internet providing information on airline schedules.

Answer 1

We have the classification as below.

1. Wilderness areas - It is a common good, an impure public good, since it is rival in consumption, but is not excludable. Its consumption by an individual would decrease its consumption for the next individual.
2. Prison - It is also a common good. Its consumption by an individual would reduce the consumption by the next individual, and hence rival in consumption. But, it is non-excludable, as its no one can prevent its consumption to any individual (like, anybody can go to prison :-D).
3. Peace keeping in Sudan - It is a public good. Its consumption by one would not reduce its consumption to next, and hence, is non-rival in consumption. Also, no one can be prevented to consume it, and hence, is non-excludable in consumption.
4. Public television program - It is a public good. Its consumption by one does not reduce its quantity to the next, and is not exclusive to people, it can be seen by anyone.
5. A website on the internet providing information on airline schedules - It is a public good, since its consumption would not be reduced by one more individual, and anyone can see it.