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Hi, everyone.
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Today we will be answering problem three from chapter 11, which asks us which of the following is an example of a public good.
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So to tackle this question, before we even jump into what a public good is, it's first important to understand the terms excludable and rival in consumption.
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So any good is excludable when people can be prevented from using that good.
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If some action can be taken to prevent someone from having access and being able to enjoy that good.
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And a good is rival in consumption when one person's use of the good reduces other people's use of the good.
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And these are just two definitions to know two different ways of categorizing goods.
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So now that we have those definitions, we'll move on to the question, which asked us about public goods.
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And a public good by definition is a good that is not excludable and that is not.
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Rival consumption...