Identifying and Providing Types of Goods
You will explain why some goods should be provided by the government and others should be provided by businesses. Given a list, correctly identify types of goods based on excludability and rivalness. Support
your answer.
TTask 1:
Consider the following list of goods. For each good, explain the following points.
Is the good rival?
Is the good excludable?
Identify the type of good (Private Good, Public Good, Common Resource, or Quasi Public Good)
Are there any externalities associated with this good?
Explain whether the private market should provide this good or the government should provide this good. Explain in terms of whether the characteristics of the good would make it difficult to be provided
by the private market or the government.
Answer for each event below.
A.
A cup of coffee at a coffee shop
Is the good rival?
Is the good excludable?
Identify the type of good (Private Good, Public Good, Common Resource, or Quasi Public Good)
Are there any externalities associa
ted with this good?
Explain whether the private market should provide this good or the government should provide this good. Explain in terms of whether the characteristics of the good would make it difficult to be
provided by the private market or the
government.
B.
City fire protection
Is the good rival?
Is the good excludable?
Identify the type of good (Private Good, Public Good, Common Resource, or Quasi Public Good)
Are there any externalities associated with this good?
Explain whether the private mark
et should provide this good or the government should provide
this good. Explain in terms of whether the characteristics of the good would make it difficult to be
provided by the private market or the government.
C.
Polar bears in the Arctic
Is the good rival?
Is the good excludable?
Identify the type of good (Private Good, Public Good, Common Resource, or Quasi Public Good)
Are there any externalities associated with this good?
Explain whether the private market should provide this good or the government shoul
d provide
this good. Explain in terms of whether the characteristics of the good would make it difficult to be
provided by the private market or the government.
D.
Clean air
Is the good rival?
Is the good excludable?
Identify the type of good (Private Good, Public Good, Common Resource, or Quasi Public Good)
Are there any externalities associated with this good?
Explain whether the private market should provide this good or the government should provide this good. Explain in terms of whether the characteristics of the good would make it difficult to be provided by the private market or the government.
