econ306 - provided for everyone without paying for them...

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Real life examples of public goods can be most notably seen in this countries defense system and law enforcement agencies. Both of these meet the requirements of being non rival in consumption, which means everyone within the United States benefits from the defense system equally. Finally it also meets the requirement of non exclusion, which means the value of defense cost for the entire nation cannot be paid for by one person. Recently efforts to help the environment can also be deemed a public good, does driving a hybrid vehicle really place a value on the benefit of helping the environment?? The public good system is an example of market failure it creates what is called free riding, where people use benefits
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Unformatted text preview: provided for everyone without paying for them. National Defense also benefits the millions of illegal immigrants who do not pay taxes; measures that help save the environment will not be seen by this generation but generations farther down the line. Some questions to ponder: Would holding the population accountable for public goods eliminate the free rider problem? (For example requiring military service by everyone for a selected term) Does government intervention always resolve most of the issues when dealing with who’s responsible for paying for a public good? (For example government regulates tax brackets and taxes in effect pay for every public good)...
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