Purchase Solution

Characteristics of public goods.

Not what you're looking for?

Ask Custom Question

Explain the two characteristics of public goods and explain the significance of each from public provision as opposed to private provision. Include the free-rider problem as it relates to public goods and whether the U.S. border patrol is a public or private good and why.

Purchase this Solution
Solution Summary

Characteristics of public goods are explained with significant examples. The solution includes the free-rider problem as it relates to public goods and whether the U.S border patrol is a public or private good and why.

Solution Preview

There are two types of goods that are produced in the market namely private goods and public goods. Private goods are produced through the competitive market system. Examples of private goods are goods that can be found in regular stores. Private goods have two characteristics namely rivalry and excludability (McConnell & Brue, 2008, p. 73). Rivalry means that when one "person buys and consumes a product; it is not available for purchase and consumption by another person" (McConnell & Brue, 2008, p. 73). Excludability on the other hand means that buyers who are willing to pay the market price of a product get the benefit of the product while those who cannot afford the price of the product are excluded from enjoying the benefit of the ...

Solution provided by:
Edwin Sinclar, MBA
Education
  • MBA, Aspen University
  • Bachelor of Science , Berea College
Recent Feedback
  • "Thank u"
  • "Thank You!"
  • "Thanks!"
  • "Thank you so much"
  • "Great job...thanks."
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • characteristics of public goods

    185199 Public Goods List two characteristics of public goods and explain the significance of each for public provision as opposed to private provision.

  • Distinguishing types of public goods

    Quasi- public goods lose to some extent both of these characteristics.

  • Discussion on Supply and Demand and Private and Public Goods

    Characteristics of Public Goods (Riley, 2012): As one might expect, the characteristics of pure public goods are the opposite of private goods: Non-excludability: The benefits derived from the provision of pure public goods cannot be confined to

  • Positive vs Normative Statement

    Step 4 Two main characteristics of public goods are that it cannot be effectively excluded from use and its use by one person does not reduce availability to others. These characteristics of public goods are non-excludable, and non-rivalrous.

  • Managerial Economics and Property Rights

    Haefele Taylor & Francis, 2010 (2)Public Goods, Private Goods: The Merging in Global Space Annette Meyer Dorrance Publishing, 2010 Special characteristics of property rights are explained in a structured manner in this response.

  • bio fuel

    For example, if a consumer uses one gallon of gasoline another is prevented from using its. In case of public goods it is not rivalrous and others cannot be excluded.

  • Edgeworth box, compartive advantage, and other topics

    Although adding one more student to the lecture hall carries little cost to the university, eduction does not have the necessary characteristics to make it a public good. Public goods must be non-rivalrous (cannot be exhausted) and non-excludable.

  • Public versus Private Workplace

    466895 Public vs Private Workplace Discuss the characteristics of a public vs. private workplace and provide two examples of each. Why might union density be so much higher in public workplaces than in private workplaces?

  • Expenditures and Expenses

    The government acquisition of goods and services for current use or for the satisfaction of the collective needs of society is included in expenditure. Expenditure happens on every level of government.

View More Related Solutions