Both public goods and common resources involveexternalities.a. Are the externalities associated with public goodsgenerally positive or negative? Is the free-marketquantity of public goods generally greater or lessthan the socially efficient quantity? Cite examplesin your answer.b. Are the externalities associated with commonresources generally positive or negative? Is thefree-market use of common resources generallygreater or less than the socially efficient use?Cite examples in your answer.
Both public goods and common resources involveexternalities.a. Are the externalities associated with public goodsgenerally positive or negative? Is the free-marketquantity of public goods generally greater or lessthan the socially efficient quantity? Cite examplesin your answer.b. Are the externalities associated with commonresources generally positive or negative? Is thefree-market use of common resources generallygreater or less than the socially efficient use?Cite examples in your answer.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 2PA
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Question
Both public goods and common resources involve
externalities.
a. Are the externalities associated with public goods
generally positive or negative? Is the free-market
quantity of public goods generally greater or less
than the socially efficient quantity? Cite examples
in your answer.
b. Are the externalities associated with common
resources generally positive or negative? Is the
free-market use of common resources generally
greater or less than the socially efficient use?
Cite examples in your answer.
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