51-Public_goods_teacher_sheet1

51-Public_goods_teacher_sheet1 - Teacher guidance sheet...

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Teacher guidance sheet Public goods – taking it further 1. Students are likely to mention the ‘standard’ non-rival and non-excludable characteristics. However, you could also suggest that they think about the positive externalities that many public goods bestow on society, and the fact that public goods tend to also be non-rejectable (in other words, if someone doesn’t want to take advantage of the provision of a particular public good then there is no way of them avoiding, or rejecting,it). Another characteristic of a truly public good is that all consumers will consume exactly the same amount of it , although they won’t all necessarily equally value their consumption of that same amount e.g. they may enjoy different levels of marginal utility . 2. There’s a reasonable amount of discussion on this question in the academic literature, with many academic economists suggesting that there is no such thing as a pure private good. Rather, there is an argument that there is a spectrum between a pure public good and a pure private good – the best way to think about this is to address the main characteristics of public goods (non-rivalry and non-excludability). The following table
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This note was uploaded on 02/08/2012 for the course ECO 51844 taught by Professor Sabet during the Spring '11 term at FIU.

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51-Public_goods_teacher_sheet1 - Teacher guidance sheet...

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