To determine: The public goods and private goods from the given data.
Explanation of Solution
- a. Wilderness area
This is a pure public good. At certain point, this area has minimal human activity and usually referred to as wild area. This area is usually owned by a firm or individuals. Also, this is non- excludable.
- b. Satellite television
This is a impure public good. Satellite televisions are non rival in consumption, though it is excludable.
- c. Medical school education
This is a private good depending on the conditions. Any individual from society can get educated by meeting the required criteria. These criteria can result in public good and any person can avail it.
- d. Public television programs
Television signals are non-rival in consumption and non-excludable when programs are broadcasted over the air. Hence, they are public good.
- e. Automated teller machine (ATM)
This is a private good. An ATM machine is rival in consumption, at-least during peak hours. It is excludable as only certain customers who have ATM cards can use the machine.
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Chapter 4 Solutions
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