A public good is one that is freely available to everyone. So if the good is offered
to one person, then it is impossible and impractical for the good to be excluded from
others. In most cases, governments are best suited for providing people with public
goods; such as, public schools, libraries, national parks, clean air, and even traffic lights.
A distinctive characteristic of a public good in economics is that each individual’s
consumption of the public good will not lead to any subtraction from another person’s
consumption of that good. Therefore, public goods are non-rivalrous and non-excludable.
A private good differs from public goods because private goods consist of goods
which are not accessible to everyone; in fact, they have various restrictions and
entitlements. A private good is described as one that is rivaled and excludable; in other
words, this implies that as the good is consumed by one individual, then it is not available
for others’ to utilize that good.
An impure public goods is a term used to describe public goods that may have
been distributed in one way or another impurely. In other words, impure public goods
vary by the reasons behind having the public good more accessible in some regions
compared to other locations. Impure public goods vary by location; for example, the
location of our very own Dr. Martin Luther King, Jr. Library may be an impure public
good, since it is more easily accessible by people commuting or living in downtown San
Jose that it may be for others. Another example is the location of a police station or the
location of the patrolling officers, since it is essential that officers be available to certain
areas of a town which require more attention.
to say that “efficient allocation if the best allocation” because
resource allocation depends on the perspective of the public sector as they set to allocate
public goods and services. The two approaches may be broken down into the views of
macroeconomics and microeconomics. According to the microeconomic theory, the
principles of efficient allocation of resources, including the principles which apply to
goods and services are made public. Goods and services that are public have two
features: (1) they are consumed jointly by a large number of people, and (2) it is costly to
exclude people from enjoying them. It is also important to take into consideration the
influences of the distribution of income which are key indicators for decision-making.
Therefore, the efficient use of resources and the distribution of income are separation
considerations; whereas, the best allocation will vary. According to macroeconomics,
policies were primarily aimed at reducing the unemployment, promoting price stability,
and providing for future growth.
C6.) A hedonic equation is very much correlated to urban housing and real estate as