Problem 14 Name two public goods and explai... [FREE SOLUTION]

Chapter 13: Problem 14

Name two public goods and explain why they are public goods.

Short Answer

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Public Good 1: National defense is a public good because it is non-excludable and non-rivalrous. It protects all citizens without discrimination, and one person's use of protection doesn't reduce its availability for others. Public Good 2: Clean air is a public good because it is non-excludable and non-rivalrous. Everyone can breathe clean air without excluding others, and one person breathing clean air doesn't reduce its availability for others.

Step by step solution

Public Good 1: National defense

National defense is a classic example of a public good. It is non-excludable, as everyone living within a nation gets the benefits of defense services without discrimination. Also, it is non-rivalrous because one person's consumption of national defense doesn't decrease its availability for others. The military protects all the citizens of the nation, and an individual's use of that protection does not take away the same protection from another person.

Public Good 2: Clean air

Another example of a public good is clean air. It is non-excludable, as everyone can breathe clean air without excluding others, and people do not have to pay for access to clean air. At the same time, it is non-rivalrous since one person breathing clean air does not take away or reduce the clean air available to others. Clean air is a resource that all individuals can benefit from equally, without diminishing its availability for the rest of the population.