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Economics Lecture Ten (view source)

Revision as of 03:02, November 11, 2009

1,386 bytes added ,  03:02, November 11, 2009
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Garbage collection in most cities is a public good because voters want all of the garbage collected, whether someone wants to pay for it or not.  But in rural areas, including much of New Jersey, people do pay private for garbage college.  The small town governments do not pay for it.
 
Garbage collection in most cities is a public good because voters want all of the garbage collected, whether someone wants to pay for it or not.  But in rural areas, including much of New Jersey, people do pay private for garbage college.  The small town governments do not pay for it.
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== Private good ==
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A "private good" is the opposite of a public good.  Specifically, '''''a "private good" is an item which is consumed by someone and is no longer available to someone else.'''''  Food and clothing are examples of private goods.
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Most of the items that we have discussed in this course are private goods.  Examples of private goods include a ticket to a Yankees' game, a chocolate candy bar, and a few hours of services provided by a doctor or lawyer.  Private firms typically provide private goods, rather than the government.  However, a postage stamp to mail a letter is also a private good: once you use it, it cannot be used by anyone else.  A subway token is also a private good which enables one, and only one, to ride the subway.
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The significance of a "private good" is its distinction from a "public good."  Rarely does an economics exam ask about private goods, but there are several questions on the CLEP exam about public goods.
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==Public v. Private goods compared==
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Keep in mind that public goods are provided by government because it is difficult to exclude people from using them.  The theory is that taxes should pay for them rather than trying to charge people individually, because it is so difficult to do so.  Private goods do not have that problem of charging people individually, so there is no need for government to provide private goods.
    
==Antitrust Laws==
 
==Antitrust Laws==
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