--%>

Why Public or social goods not be produced through market

Why Public or social goods not be produced through the market?

E

Expert

Verified

Public or social goods would not be produced through the market, because they are indivisible and are not subject to the exclusion principle. A lighthouse is a good example of a public good. To see whether they paid for it or not, the light is there for all. Those who receive benefits without paying are part of the so called free rider problem.

For eg: Flood control, National defense, Public health.

   Related Questions in Business Economics

  • Q : Illustrate the Goals of Mixed Economy

    Illustrate the Goals of Mixed Economy?

  • Q : Define the natural price by Adam Smith

    In words of Adam Smith, who theorized that the “natural price” of a good based most directly upon the: (1) wage rate and the relative amount of labor required to produce the good. (2) greater of the value of the good &ldqu

  • Q : Determine the lowest average wages

    Consider a huge group of identically smart and strong industrious workers. All else identical, Adam Smith would predict such that the lowest average wages would be earned through the workers who were in the work that: (1) had the leas

  • Q : How government might manipulate its

    Explain how government might manipulate its expenditures and tax revenues to reduce unemployment?

  • Q : Attributed statement of the utilitarian

    “The best of all probable worlds is one in that we adopt policies which maximize the happiness of the lots number of people” is a statement of the utilitarian philosophy attributed to: (w) Alfred Korzybski. (x) Hugo Grotius. (y) Xenophon.

  • Q : What do you mean by Graphs What do you

    What do you mean by Graphs?

  • Q : Business Economics Hello, I would like

    Hello, I would like help with my assignment.

  • Q : Limitation of intermediaries for

    Intermediaries do not classically: (w) reduce transaction costs. (x) absorb risk. (y) try to make profits. (z) cause prices to be more volatile. I need a good answer on the topic of Economic problems. Please give m

  • Q : Concepts of Economic system argues by

    For Economic system argues by Adam Smith relies heavily upon all the given concepts EXCEPT: (w) market expansion will be facilitated through capital accumulation. (x) prices will be driven to the lowest point at that production can ev

  • Q : Illustrate Market Equilibrium of Supply

    Illustrate Market Equilibrium of Supply and Demand?