Both public goods and common resources involve externalities. A. Are the externalities associated...
Question:
Both public goods and common resources involve externalities.
A. Are the externalities associated with public goods generally positive or negative? Use examples in the answer. Is the free-market quantity of public goods generally greater or less than the efficient quantity?
B. Are the externalities associated with common resources generally positive or negative? Use examples in the answer. Is the free-market use of common resources generally greater or less than efficient use?
Public Good:
A public good, in financial terms, refers to a product or service that is made available to the whole public. Governments often manage and fund these organizations, which are mostly funded by taxation.
Answer and Explanation: 1
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View this answera) Externalities exist in both public goods and common resources. Public goods generally have favorable externalities. As a result, the amount of...
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Public Good in Economics | Definition, Characteristics & Examples
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Chapter 3 / Lesson 64
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Learn the definition of a public good and understand the theory of public goods. Explore the characteristics of public goods and review various examples.
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