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Chapter 13: Q.13 (page 316)

What are the two key characteristics of public goods?

Short Answer

Expert verified

Public goods are nonexcludable and non-rival.

Step by step solution

01

Content Introduction

Market producers cannot sell public goods to individual consumers because they are produced for the entire society. All products subsidized by taxes, on the other hand, are not considered public goods.

02

Content Explanation

Two essential characteristics of a public good are nonexcludable and nonrivalry. The term "nonexcludable" refers to the fact that one consumer cannot or will not be able to prevent another from using the goods. The phrase "non-rival" refers to the fact that one person's use of a product does not prevent others from doing so as well.

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Most popular questions from this chapter

Are the following goods non-rival in consumption?

a. slice of pizza

b. laptop computer

c. public radio

d. ice cream cone

Which of the following goods or services are nonexcludable?

a. police protection

b. streaming music from satellite transmission programs

c. roads

d. primary education

e. cell phone service

Can a company be guaranteed all of the social

benefits of a new invention? Why or why not?

The Junkbuyers Company travels from home to home, looking for opportunities to buy items that would otherwise end up with the garbage, but which the company can resell or recycle. Which will be larger, the private or the social benefits?

When residents in a neighborhood tidy it and keep it neat, there are a number of positive spillovers: higher property values, less crime, happier residents. What types of government policies can encourage neighborhoods to clean up?
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