A public good has characteristics of non-rivalry and non-excludability. This means that once the good is provided, everybody benefits, and if one person benefits it doesn’t reduce the amount available to others. Public health can be seen as a public good. If you take precautions to remain healthy and not pass on Covid, you benefit …
A public good has two characteristics: Non-rivalry: This means that when a good is consumed, it doesn’t reduce the amount available for others. – E.g. benefiting from a street light doesn’t reduce the light available for others but eating an apple would. Non-excludability: This occurs when it is not possible to provide a good without …
Here in Oxford, there is water everywhere. Yesterday, the main road into town (Abingdon Road) was closed due to flooding, and the cost to business and householders will be quite significant. There is a danger of even worse flooding to come. In one sense, it is an act of God. No one can do anything …
Readers Question: discuss whether economic actions by individuals always results in net benefit to the society “Many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own …
Readers Question: Why government, rather than private industry, is required for an effective mosquito eradication program? An effective mosquito eradication program is an example of a public good. If you exterminate all the mosquitos it has the characteristics of Non rivalry. – When you benefit from living in an area free of mosquito’s it doesn’t …
Q. Use economics and political theory to explain why the fire and rescue service should be provided by the state. I don’t want the answer….I just don’t understand what this means. This revolves around a fundamental debate in economics – How much should the government intervene in the economy? Ideally, goods and services would be …
Definition and explanation of different types of goods Free good – no opportunity cost Private – Good with opportunity cost, rivalry and excludable Public good – non-rivalry, non-excludable Free Good A free good is a good needed by society but available with no opportunity cost. It is a good without scarcity. For example, air is …
The UK tax burden has increased to the highest level since 1948. In the past three decades, the burden has risen from 28% to 37% of GDP and will continue to rise with the typical household expected to pay an extra £650 a year from April. However, whilst in 1948, the government were setting up …