Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 1DQ
To determine
Examples of public good.
Expert Solution & Answer
Explanation of Solution
A public good is a good or service whose benefits are not rival in consumption. Generally, it is difficult to exclude people from the consumption of a public good, even if they are unwilling to pay for the benefits. There are many examples for public goods. The diplomatic service of a country, which is intended to produce friendly relations with other countries, is an example of a public good. The use of a traffic signal is another example of a public good. If one driver can use the sign for traffic management and safety, it does not mean that other drivers are less able to do so.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Compare and contrast private and public goods. Give an example for each kind of good.
Explain the term public goods with examples
What are public goods/services? Provide an example of a public good and say why it is a public good/service
Chapter 15 Solutions
Economics: Principles & Policy
Knowledge Booster
Similar questions
- Define and give an example of a common resource. Without government intervention, will people use this good too much or too little? why? List and define the different kinds of goods. Give an example of eacharrow_forwardplease help me with the questions below: Explain why it is difficult to estimate the value people place on environmental goods, thebenefits they receive from cleaner air and other services of nature. How might you calculate WTP or MWTP for an environmental good? Distinguish between use and non-use value.arrow_forwardDefine public and private goodsarrow_forward
- Public products should be on the vertical axis and private goods should be on the horizontal axis of a production potential curve. Explain how the output of public goods might be enhanced, assuming that the economy is initially running along the curve. In the event that the economy is originally running at a point inside the curve, how may the output of public goods be increased?arrow_forwardDefine and give an example of a common resource. Without government intervention, will people use this good too much or too little? Explain.arrow_forwardPublic goods:a. Please explain public goods. b. Please explain their characteristics. c. Please give 2 examples of public goods, including why those examples best fit your definition.arrow_forward
- Explain what public goods are, and why public goods are provided by the government, using terms and details from thearrow_forwardA free rider is Group of answer choices A)Someone who consumes a public good but does not pay for it. B)Someone who only purchases resold goods or only uses items they can get for free. C)Someone who gives away items they have purchased. D)Someone who resells items they have purchased.arrow_forwardWhich of the following statements about public goods is true? Public goods are more important economically than private goods. It is difficult or impossible to exclude people from the consumption of a public good even if they do not pay. The incentive of private producers to supply public goods is weak. a. I only b. III only c. II and III d. I, II, and IIIarrow_forward
- The public smoking of cigarettes generates costs to society from second-hand smoke, therefore, cigarette production imposes costs on people who do not smoke. Moreover, private consumption of cigarettes can start apartment building and wild fires that also impose costs on non-smokers. Luckily, fire extinguishers can help prevent the spread of fires. Suppose that the government can institute either a tax on cigarette producers, or a subsidy to cigarette producers, to bring the private production costs in line with social costs. Identify where the socially optimal equilibrium would be.arrow_forwardWhat are the two essential characteristics of public goods? Choose the two characteristics that apply. A. Individuals pay for public goods as they are used. B. Some people receive greater opportunities to use public goods. C. Public goods can be used by more and more people at no additional opportunity cost and without depriving others of any of the goods or services. D. Collection systems are difficult to institute for public goods because of how people use them.arrow_forwardDistinguish between Public Goods and Private Goods. Give examples.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage LearningMicroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEssentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage LearningEconomics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co