Question
1) Classify each of the following in one of the four categories of goods: Private, Common Resource, Club, Public [adapted from Mankiw, 6th] a. Broadcast
1) Classify each of the following in one of the four categories of goods: Private, Common Resource, Club, Public [adapted from Mankiw, 6th] a. Broadcast TV (over the air with antenna) b. Ham sandwich c. Public highway that is not crowded d. Cable TV e. City park with no entry fee f. Deer in the wild (if no restriction on hunting) g. Public highway during a traffic jam h. Deer in a private hunting reserve 2) I love listening to Planet Money on NPR but I have never sent any money to the station during their fund-raising drive. a. What name do economists have for this behavior. What problem does this behavior cause? b. How could the government solve the problem caused by people like me? c. How could the private market solve this problem? Does satellite radio alter this situation? 3) Your friend says, "If a good is provided by the government, then it must be a public good." Is that true? Explain. Give specific examples to illustrate your point.
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