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Are the following goods non-rival in consumption?…

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Problem 1 Problem 2 Problem 3 Problem 4 Problem 5 Problem 6 Problem 7 Problem 8 Problem 9 Problem 10 Problem 11 Problem 12 Problem 13 Problem 14 Problem 15 Problem 16 Problem 17 Problem 18 Problem 19 Problem 20 Problem 21 Problem 22 Problem 23 Problem 24 Problem 25

Problem 7 Medium Difficulty

Which of the following goods or services are nonexcludable?
a. police protection
b. streaming music from satellite transmission programs
c. roads
d. primary education
e. cell phone service

Answer

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Principles of Microeconomics for AP® Courses

Chapter 13

Positive Externalities and Public Goods

Related Topics

Markets and Welfare

The Economics of the Public Sector

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Video Transcript

It typically is too difficult to exclude things like police protection from some people and not others. So we would say that is non excludable. How about streaming music from satellite transmission programs? Well, most likely, since it's coming from a satellite that makes it sound like that would also be non excludable, whereas most streaming service is you have to pay for because they're being sent to your particular device. This sounds like it's just being sent out, and it wouldn't really be possible to figure out which devices were receiving the signal and which ones we're not. How about roads? Well, roads? You can always put a toll on them. Maybe that's not practical for local roads, but certainly for high highways, it is so roads could be excludable. What about primary education? Primary education? Again, it's pretty easy to exclude a child. If their parents have not paid the tuition bill, then they don't get to come into the building. It's easy to see which child has paid in which child has not. What about cell phone service? Well, unlike streaming cell phone service is sent to a particular device, and it's again easy to see if a person has paid their bill or not, and it's easy to shut off one particular phone. So from this list, it looks like the only ones that would be non excludable would be police protection and streaming service from a satellite.

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Steven A. Greenlaw, David Shapiro, Timothy Taylor

Principles of Microeconomics for AP® Courses

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