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    Public and private goods

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    The citizens of Balaland used to pave 120 miles of roadways per year. After the government of Balaland began paving 100 miles of roadways per year itself, the citizens cut back their paving to 30 miles per year, for a total number of roadway miles paved per year of only 130 miles. What might be happening here?

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    This is a question of public and private goods. When the citizens of Balaland used to pave the roadways themselves, they used to look upon the ...

    Solution Summary

    A question of public and private goods is posed.