Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 11 - Part IV - Public Goods and Common Resources - Questions for Review: 2

Answer

*public good: not excludable, not rival. Ex. national defense * Private market cannot provide this good on its own.

Work Step by Step

*NOT EXCLUDABLE: Because no citizen can be prevented from using the protection of national defense. NOT RIVAL:Because the use of this good by one person does not diminish the benefit others can get from the good. *Private market cannot provide good on its own because nobody would pay for the good, since they cannot be excluded because they don't pay.
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