Gov solutions to Public goods

Question 1

How does the government intervene to solve the free rider problem ?

Answer 1

They gather up tax revenue (indirect and direct) in order to provide public goods

Question 2

What is it this type of provision called from the government ? And why do they

Answer 2

State provision. State provides public goods as the market will not

Question 3

Why are healthcare and education not public goods ?

Answer 3

Because those goods are non excludable. For instance, schools can exclude people from entering the school and healthcare can refuse to treat patients

Question 4

If healthcare and education are not public goods, why does the government provide them ?

Answer 4

Because healthcare and education provide positive externalities to the rest of society

Question 5

What are examples of public goods government do provide ?

Answer 5

Police,fire brigade, roads, parks, flood defences

Question 6

In real life, what are the exceptions to pure public goods ? Give an example of a pure public good

Answer 6

Not all public good are pure public goods. For example, the police force, fire brigade, park and roads can be either rival or excludable.
An example of a pure public good are flood defences.

Question 7

What is a quasi public good ?

Answer 7

It is a mix of characteristics between private and public goods