This preview shows page 1. Sign up to view the full content.
Unformatted text preview: the movie by requiring that they pay for a ticket. So a movie is not a public good, it is a private good. North Carolina has a provision in its state constitution forbidding toll roads. The beltline is collectively consumed, and our North Carolina constitution forbids a means to exclude people from using the road by using toll booths to collect fees for road use. Therefore, in North Carolina, our road system is by definition a public good. What about national defense? Would it be produced by the private sector in quantities that would be effective? How would a business firm exclude people from consuming national defense? How could the business firm legally make people pay for national defense? If you dont pay, does the private business firm have the right to kick you out of the country? Put you in prison?...
View Full Document
This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10
- Public Good