Question

In: Economics

Explain which category (Public Good, Private Good, Club Good or Common Resources)  each of the following goods...

Explain which category (Public Good, Private Good, Club Good or Common Resources)  each of the following goods falls into and why:

  • police protection
  • snow plowing
  • education
  • rural roads
  • city streets

Why do you think the government provides items that are not public goods? (free-riding)

Solutions

Expert Solution

1> Police protection is non-rival and non-excludable since police protection is for all and thus no one is excluded from it. Also, it is not rival because if I enjoy protection, it will not harm another one. So, it is a public good.

2> Snow plowing is also non-rival and non-excludable since if the snow is plowed, we can not tell someone not to go to the road and not enjoy the benefit, so it is non-excludable. It is non-rival in nature because in snow-plowing, if one enjoys the benefit, one does not get harmed. So, it is also a public good.

3> Education is a club good, because it is excludable as an University selects a group of students and can exclude someone from education. But, it is non-rival because if I get educated, I do not directly negatively affect someone.

4> Rural roads are public good unlike urban roads. Obviously, it is a non-excludable good because no one can be excluded from the road. Since the rural roads are never congested, me driving on a rural road does not affect another one.


Related Solutions

Explain which category each of the following goods falls into (private good, public good, common resource...
Explain which category each of the following goods falls into (private good, public good, common resource or natural monopoly): a. Police protection b. Snow plowing c. Education d. Rural roads e. City streets
Classify the following goods and services as private goods, common resources, artificially scarce goods, or public...
Classify the following goods and services as private goods, common resources, artificially scarce goods, or public goods. Health insurance is Radio spectrum is A video on Netflix is A mosquito control program in a city is Studying space in library is
Is a college class at a public university a Private good, Public good, or Club good
Is a college class at a public university a Private good, Public good, or Club good
In the list below tell me whether it’s a private good, public good, common resources or...
In the list below tell me whether it’s a private good, public good, common resources or club resources. Explain. Fish in Beaverkill stream in Roscoe NY NYC Central Park NYC water from the Catskill Mountains Basic research on cancer drug Radio broadcasting system Cable television signals
Classify each of the following items as a public good, a private good, a natural monopoly...
Classify each of the following items as a public good, a private good, a natural monopoly good, or a common resource, and explain your classification. A car licenses Tuna in the Pacific Ocean Airline service within Canada A cinema A local storm-water system
“Both private goods and club goods are excludable, so there are no reasons for the government to regulate or tax private goods and club goods producers.”
  1. “Both private goods and club goods are excludable, so there are no reasons for the government to regulate or tax private goods and club goods producers.” Do you agree with this statement? Justify your answer. 2. Explain why does an increase in the price of ivory threatens the elephant population in Africa, while an increase in the price of beef protects the cow farms in Texas. 3. “When the market-equilibrium quantity of good “x” is larger than the...
Some resources are private, others are common, and still others are public. Define a private resource,...
Some resources are private, others are common, and still others are public. Define a private resource, common resource, and public resource, explain your definitions, and provide one example of each. What problem prevents the efficient provision and management of a common resource by private unregulated markets? What problem prevents the efficient provision and management of a private good or service by private unregulated markets? What is the obstacle to the efficient production by free markets of goods and services like...
1.   Both public goods and common property resources involve externalities. a)   Are the externalities associated with public goods...
1.   Both public goods and common property resources involve externalities. a)   Are the externalities associated with public goods generally positive or negative? Use examples in your answer. Is the free-market quantity of public goods generally greater or less than the efficient quantity? b)  Are the externalities associated with common resources generally positive or negative? Use examples in your answer. Is the free-market use of common resources generally greater or less than the efficient use?
Explain whether the following goods and services are private, public, mixed or merit goods in terms...
Explain whether the following goods and services are private, public, mixed or merit goods in terms of their rivalry and excludability 2.1. A game reserve (2) 2.2. A cell phone (mobile phone) (2) 2.3. Private security services (2) 2.4. Education (2) 2.5. The National Defence Force
Use the following classification to determine which category each of the following goods falls into.   ...
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
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT