W7 - Alexander Mayer Econ 101 Professor Wallace Section 391...

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Econ 101 Professor Wallace Section 391 Homework #7 1. Define what is meant by a “public good”? What properties do public goods have? Public good are socially valuable commodities whose provision cannot be financed by private enterprise, or at least not at socially desirable prices. Government must pay for pubic goods if they are to be provided at all. Public goods include everything from national defense to coastal lighthouses. Public goods unlike private goods are never depleted and can be used repeatedly by the general public. Public goods additionally do not have an excludable characteristic, meaning, all, including those who do not pay for it, have rights to the good. In short, a public good is defined as a good that lacks depletability and often lacks excludability. 2. Give 5 examples of public goods. In each case explain why additional users do not deplete the good and why it is difficult to exclude people from using it. a. A snow plowed road: once the road is plowed, all have access to using the road. Therefore, it’s neither depleted nor excludable. b. A public basketball court: After the town pays for the court, all can use the court and it will always be there. c.
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W7 - Alexander Mayer Econ 101 Professor Wallace Section 391...

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