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Chapter 13: Problem 14

Name two public goods and explain why they are public goods.

Short Answer

Expert verified
National defense and clean air are two examples of public goods. National defense is a public good because it is non-excludable and non-rivalrous, ensuring the safety of all citizens within a nation without reducing its availability for others. Clean air is also a public good since it is non-excludable and non-rivalrous, providing benefits to everyone in a specific area without limiting availability or decreasing the quantity available for others.

Step by step solution

01

Public Good 1: National Defense

National defense is a public good because it is non-excludable and non-rivalrous. Protecting a country's borders and ensuring the safety of its citizens benefits everyone within the nation, and no one can be excluded from enjoying the security provided by a nation's defense forces. Additionally, one individual's consumption or use of national defense does not reduce the availability of that protection for others. As a result, national defense is considered a public good.
02

Public Good 2: Clean Air

Clean air is another example of a public good since it is both non-excludable and non-rivalrous. Everyone in a specific area has access to and ultimately benefits from clean air, and it is not possible to limit the availability of clean air to specific individuals. Moreover, one person breathing clean air does not decrease the quantity of clean air available for others. As a result, clean air is considered a public good. In both of these examples, we can see that the main characteristics of public goods - non-excludability and non-rivalry - are fulfilled, making national defense and clean air fitting examples of public goods.

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