The merry-go-round in Ross Park, a public park in Binghamton, New York, was first installed in 1920 and has been periodically refurbished by the city in the years since. There is no entry fee to visit the park or to ride the merry- go-round. Is the merry-go-round a public good? Briefly explain.

When we talk about non-excludable goods, we're referring to products or services that cannot easily prevent people from using them. Once provided, no one can be effectively barred from enjoying their benefits, regardless of whether they have paid for them. Public parks are classic examples of non-excludable goods. Imagine yourself walking into Ross Park in Binghamton—there's no gatekeeper charging admission, allowing everyone free entry. Similarly, the merry-go-round in this park is accessible to all, mirroring the essence of non-excludability. It's like a radio broadcast; as long as you have a receiver, you're in on the tunes being aired, whether or not you contribute to the station.

When we delve into the topic of non-rivalrous goods, we find another characteristic of public goods. These are goods that one person's consumption does not diminish another's ability to consume. Think about a lighthouse: its guiding light helps all ships equally, without being less useful to one ship if another also navigates by its shine. In the case of the merry-go-round at Ross Park, one child's joyous ride doesn't make it less available for the next eager child waiting their turn (provided there's space). This is in contrast to a slice of cake—once eaten by someone, it unfortunately can't be enjoyed by another.

The world runs on a complex system of economic principles, rules that govern the production, distribution, and consumption of goods and services. Thinking about the merry-go-round again, its very existence is thanks to the application of such principles by the local government. Economists are particularly concerned with how resources are allocated and used in society. For instance, if a certain resource is limited, how should it be distributed fairly and efficiently? Public goods like the merry-go-round come into the picture here, too, as they're typically provided without a direct profit motive but address a broader public interest or need—joy and recreation for the community in this case.

Sometimes, marketplaces don't work perfectly and fail to allocate resources in a way that benefits society as a whole, and this is what we mean by market failure. For instance, private companies might not provide a park or a merry-go-round since they can't easily charge everyone who uses them, and thus can't guarantee profits. It's here that government often steps in, recognizing that certain goods—like this historic merry-go-round in Ross Park—serve a public benefit that's worth funding for the collective good. This intervention is essential because without it, the market alone might not provide these non-excludable and non-rivalrous goods, depriving the community of valuable resources and experiences.