Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

Provide two examples of goods/services that are classified as private goods/services even though they are provided by a federal government.

Short Answer

Expert verified

Two examples of products or services which might be classified as private goods/services despite the fact that they are furnished through the federal government are:
1.) Put up workplace. human beings should pay postage fees to mail letters and applications, as a consequence making them excludable.
2.) Government owned museums, which includes the Smithsonian. these museums have entrance expenses, thus making them excludable.

Step by step solution

01

Concept Introduction

Public goods are produced by the authorities or by using nature for the welfare of the people without any value. but private merchandise are the ones synthetic and bought by personal agencies to earn a earnings. whilst nature or the government provides public goods, personal goods are produced by the businessmen or the marketers.

02

Explanation

One example of a personal excellent or provider that's supplied by using the authorities might be mail shipping. There may be no cause that UPS, FedEx, et cetera, couldn't deal with mail delivery. It is excludable. It is rivalrous, but the federal government has determined to do it as a substitute. So it's no longer a public top. but it is nonetheless something the federal authorities does. Healthcare is also a personal exact. it is excludable, and it's rivalrous. however via programs such as Medicare and Medicaid and different welfare structures as properly, the federal government can offer health care to positive people at taxpayer rate.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Which of the following goods or services are nonexcludable?

a. police protection

b. streaming music from satellite transmission programs

c. roads

d. primary education

e. cell phone service

The Gizmo Company is planning to develop new household gadgets. Table 13.4 shows the companyโ€™s demand for financial capital for research and development of these gadgets, based on expected rates of return from sales. Now, say that every investment would have an additional 5% social benefitโ€”that is, an investment that pays at least a 6% return to the Gizmo Company will pay at least an 11% return for society as a whole; an investment that pays at least 7% for the Gizmo Company will pay at least 12% for society as a whole, and so on. Answer the questions that follow based on this information.

Estimated rate of returnPrivate profits of the firm from an R&D project (in \( millions)
10%\)100
9%\(102
8%\)108
7%\(118
6%\)133
5%\(153
4%\)183
3%$223

a. If the going interest rate is 9%, how much will Gizmo invest in R&D if it receives only the private benefits of this investment?

b. Assume that the interest rate is still 9%. How much will the firm invest if it also receives the social benefits of its investment? (Add an additional 5% return on all levels of investment.)

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

Suppose that Sony's R&D investment in digital devices has increased profits by 20%. Is this a private or social benefit?

Education provides both private benefits to those who receive it and broader social benefits for the economy as a whole. Think about the types of policies a government can follow to address the issue of positive spillovers in technology and then suggest a parallel set of policies that governments could follow for addressing positive externalities in education.

See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free