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    Nonexcludable goods and private goods

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    Unlike private goods, pubic goods are goods that are nonrival in consumption and/or their benefits are nonexcludable. When a good is nonexcludable, individuals can obtain the benefits of the good without paying for it (free riders). So, it appears that the existence of public goods is an example of potential market failure. Write a short response, using the arguments for government provision of public goods, describing why the government should or should not be involved in the provision of (1) airport security and (2) medical care.

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    The government has to provide public goods if there is no volunteer to do that. There are two aspects of this argument that have to be balanced. First, everyone should not be allowed to get a free rider by imposing taxation that pays for the service. Second, it is necessary to ensure that everyone is allowed to be a free rider. There are areas in which the government provides public goods and services. These are areas where it is efficient to do so. There are goods that may benefit other individuals than the purchaser, the value is higher than what the consumer can ...