Question

In: Economics

trash collection is typical service provided by most local government ,is it a pure public good?...

trash collection is typical service provided by most local government ,is it a pure public good?

a is this service a pure public good?

b should the city be engaged in trash collections activities? explain it

Solutions

Expert Solution

Pure public good

Those goods which are non-excludable and non-rivalrous in nature are considered as pure public good. Non-excludable means nobody can be excluded from consuming that good. Non-rivalrous means if one individual is consuming than availability of that good for other would not be reduced.

Part A

Trash collection cannot be considered as pure public good because it does not follow the characteristic of non-rivalrous. For example, when trash truck collects trash one by one, the opportunity for other gets reduced by some significant amount.

Part B

City should be engaged in trash collection activities as it helps in keeping the environment clean and fresh. Trash affects the productivity of economic agent indirectly. It saves money as the significant products in trash gets recycled. Thereby, it also saves the valuable resources of nature such as trees and water. Prevention of trash also deplete the level of greenhouse gas emissions which further helps in sustainable development.


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