Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 11 - Part IV - Public Goods and Common Resources - Problems and Applications - Page 229: 1

Answer

*police protection: natural monopoly. excludable , not rival *snow plowing: common resource , excludable, rival *education: private good, excludable, rival *rural roads: public goods, neither excludable nor rival *city streets: common resource (congested) , public goods (un congested).

Work Step by Step

*police force: excludable (may not patrol some neighborhoods). not rival (they have to be wherever the crimes are). *snow plowing: once area of snowboarding is plowed not excludable. rival plowing one street means not plowing in another. *education: excludable (you have to pay). rival (spaces left in class). *rural roads: they are uncontested that is why they are neither *city streets aren't excludable because anyone has access to them. They are rival because every driver slows down traffic.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.