文档介绍：Public Goods mon Resources
Chapter 11
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“The best things in life are free. . .”
Free goods provide a special challenge for economic analysis
Most goods in our economy are allocated in markets…
…for these goods, prices are the signals that guide the decisions of buyers and sellers.
“The best things in life are free. . .”
When goods are available free of charge, the market forces that normally allocate resources in our economy are absent.
“The best things in life are free. . .”
When a good does not have a price attached to it, private markets cannot ensure that the good is produced and consumed in the proper amounts.
“The best things in life are free. . .”
In such cases, government policy can potentially remedy the market failure that results, and raise economic well-being.
The Different Kinds of Goods
When thinking about the various goods in the economy, it is useful to group them according to two characteristics:
Is the good excludable?
Is the good rival?
The Different Kinds of Goods
Excludability
People can be prevented from enjoying the good.
Laws recognize and enforce private property rights.
The Different Kinds of Goods
Rivalness
One person’s use of the good diminishes another person’s enjoyment of it.
Four Types of Goods
Private Goods
Public mon Resources
Natural Monopolies
Types of Goods
Private Goods
Are both excludable and rival.
Public Goods
Are neither excludable nor rival.