Chapter 13: Problem 7

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

Short Answer

Expert verified

The nonexcludable goods or services among the given options are: a. police protection, c. roads, and d. primary education.

Step by step solution

Understanding Nonexcludable Goods/Services

Nonexcludable goods or services are those which are available to everyone, regardless of whether they have contributed to the costs of providing them. Examples include public goods, such as national defense or street lighting, and some common resources, like air or fishes in the ocean.

Option A: Police Protection

Police protection is a nonexcludable service because once the government provides it for a certain area, all residents within that area benefit from the protection provided, even if they haven't contributed to the costs of providing the service through taxes. So, option A is nonexcludable.

Option B: Streaming Music from Satellite Transmission Programs

Streaming music from satellite transmission programs is an excludable service because the provider can restrict the access to only those who have paid for the service. Individuals who haven't paid for the streaming service will not have access to it, so this option is not nonexcludable.

Option C: Roads

Roads can be classified as nonexcludable goods, especially if they are public roads maintained by the government. This means that all members of the public can use these roads, whether or not they contribute to their maintenance. However, there are private or toll roads that could be considered excludable since only paying drivers are allowed to use them. In this exercise, since the type of road is not specified, we will consider roads as nonexcludable.

Option D: Primary Education

Primary education can be seen as nonexcludable in many countries where the government provides free education to all children, meaning that anyone can access and benefit from it, regardless of their financial contributions. However, private schools that require payment for attending can be considered excludable. Given that the question does not specify private primary education, we will consider primary education as nonexcludable.

Option E: Cell Phone Service

Cell phone service is an excludable service because only individuals who pay for a subscription plan can access and use the service. Those who haven't paid for a subscription cannot access the service, so this option is not nonexcludable.

Conclusion

Among the given options, the nonexcludable goods or services are: a. police protection, c. roads, and d. primary education.

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