Question

1. Discuss how public good are used for the betterment of the general public. Provide at least three examples and provide details on the general government’s expenditure on those goods.

Answer 1

A public good refers to a commodity or service that is made available to all members of society. These services are administered by government and paid for collectively through taxation.

The two main criteria that distinguish a public good are that it must be non rivalrous and non- excludable. Non-rivalrous means that the good do not dwindle in supplg as more people consume them, non- excludable means that the good is available to all the citizens.

Common examples of public goods include:defence, public fireworks, lighthouse, clean air and another enviornmental goods such as official statistics, open-source software, authorship, public television and radio and imvention. Law enforcement, streets, libraries, museum, and education mainly are missclassified as public goods, but they are technically classified as quasi- public goods because excludability is possible, but they do still fit some of the characteristics of public goods.

Cost of public goods are financed by government through development expenditure which is revenue budget and used expenditure on health, education, sanitation, family welfare, rural development, irrigation, energy supply, tourism development etc. So this is how government financed the cost of public goods from the revenue, as it playes important part in development of country.