服务员职责SOLUTIONS TO TEXT PROBLEMS:
Quick Quizzes
1. Public goods are goods that are neither excludable nor rival. Examples include national defen, knowledge, and uncongested nontoll roads. Common resources are goods that are rival but not excludable. Examples include fish in the ocean, the environment, and congested nontoll roads.
2. The free-rider problem occurs when people receive the benefits of a good but avoid paying for it. The free-rider problem induces the government to provide public goods becau if the government us tax revenue to provide the good, everyone pays for it and everyone enjoys its benefits. The government should decide whether to provide a public good by comparing the good’s costs to its benefits; if the benefits exceed the costs, society is better off.
3. Governments try to limit the u of common resources becau one person’s u of the resource diminishes others’ u of it, so there is a negative externality which leads people to u common resources excessively.
Questions for Review
1. An excludable good is one that people can be prevented from using. A rival good is one for which one person's u of it diminishes another person's enjoyment of it. Pizza is both excludable, since a pizza producer can prevent someone from eating it who doesn't pay for it, and rival, since when one person eats it, no one el can eat it.
2. A public good is a good that is neither excludable nor rival. An example is national defen, which protects the entire nation. No one can be prevented from enjoying the benefits of it, so it is not excludable, and an additional person who benefits from it does not diminish the value of it to others, so it is not rival. The private market will not supply the good, since no one would pay for it becau they cannot be excluded from enjoying it if they don't pay for it.
3. Cost-benefit analysis is a study that compares the costs and benefits to society of providing a public good. It is important becau the government needs to know which public goods people value most highly and which have benefits that exceed the costs of supplying them. It is hard to do becau quantifying the benefits is difficult to do from a questionnaire and becau respondents have little incentive to tell the truth.
小的全来了打一成语4. A common resource is a good that is rival but not excludable. An example is fish in the ocean. I
f someone catches a fish, that leaves fewer fish for everyone el, so it's a rival good. But the ocean is so vast, you cannot charge people for the right to fish, or prevent them from fishing, so it is not excludable. Thus, without government intervention, people will u the good too much, since they don't account for the costs they impo on others when they u the good.
Problems and Applications
1. a. The externalities associated with public goods are positive. Since the benefits from the public good received by one person don't reduce the benefits received by anyone el, the social value of public goods is substantially greater than the private value. Examples include national defen, knowledge, uncongested non-toll roads, and uncongested parks. Since public goods aren't excludable, the free-market quantity is zero, so it is less than the efficient quantity.
俯卧撑动作要领b. The externalities associated with common resources are generally negative. Since common resources are rival but not excludable (so not priced) the u of the common resources by one person reduces the amount available for others. Since common resources are not priced, people tend to overu themtheir private cost of using the resources is less than the social cost. Examples include fish in the ocean, the environment, congested non-toll roads, the Town Commons, and congested parks.
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2. a. (1) Police protection is a natural monopoly, since it is excludable (the police may ignore some neighborhoods) and not rival (unless the police force is overworked, they're available whenever a crime aris). You could make an argument that police protection is rival, if the police are too busy to respond to all crimes, so that one person's u of the police reduces the amount available for others; in that ca, police protection is a private good.
(2) Snow plowing is most likely a common resource. Once a street is plowed, it isn't excludable. But it is rival, especially right after a big snowfall, since plowing one street means not plowing another street.
中国是礼仪之邦>流年忘返(3) Education is a private good (with a positive externality). It is excludable, since someone who doesn't pay can be prevented from taking class. It is rival, since the prence of an additional student in a class reduces the benefits to others.
