_____ is a private good, _____ is a public good, and _____ is a common resource. This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you Public Goods and Common Resources. Following along are instructions in the video below:
“Guys how about chocolate lava in this in this video. So i m gonna talk talk about what is the public good and common resource. Now there are four types good in economy. Now before we can distinguish which ones.
Which when i know two properties. One is called school ability what one more time it s color is color. It s the ability and the other one it s called rival rivalry in consumption. So the first one is called the ability is the ability to stop somebody else from using it seem good so for example that you have a bottle water and you re holding it on through a bottle water that means nobody else can consume the same bottle.
Water. That s called its collective ability and also i mean right now. Let s say you want to go to the houston astros game. So baseball game you need a ticket.
So that that ticket will allow you to go to the game. If you don t have a ticket cannot go to became so that that s also called it s colored bit. It s colored ability driving consumption. It means that if other people use it in same good will have an impact on your use of so good of the same good as well weighing something as income will be less a tv.
So let we have two people watching the same tv. If one person want to change the channel that means the other person s consumption of the same team a will be affected. So that s called driving consumption now before we talk about the public good. Common resource probably good and club good you need to keep in mind.
That some many of the google heavy economy. Just because they re called public good doesn t mean they re probably good just for public good in economics. There s a very strict definition. Okay so well for good um probably good.
Which is both excludable and also remain consumption. Probably good is not excludable. And it s not rivaling consumption..
Common resource right wing consumption. Not is clip is codable clark is excludable and also a but it s not robbing consumption. So it s a public with a common resource on they share. One thing comment that they are not excludable.
Now let me let me give you example of something that we call public. But it s not a public good so a public park now. It s a public park public. Good now.
Let s let s look at this to requirement. Here. So it has to be non excludable excludable and also it is not a rival in consumption. So it s public park excludable can we exclude somebody from going to the park.
But not ready because everybody can go to the park right so the park is not excludable. But that s parked suffering from a driving consumption that means if one person consume the part would that diminish my consumption of the same part me. If it s only a person or two that wouldn t impact the consumption that much but imagine if the park is it s like a black friday in past five. So it s full of people now would that impact your consumption of the part.
I mean sure well right because it would diminish your quality consumption. So you re popping heart does suffer find right wing consumption. If a public park is not a public good public park is actually a common resource. Okay and then what i thought of having library with a puppy library be a public good well let s again let s look at this to requirement is it is colorful and then does it suffer from dry avoiding consumption.
So first of all polly park. I mean partly library. It s not excludable. Everybody can go to the public library.
But there s the public library suffers from a right wing consumption. Yes right imagine again you took your library. It s like the best buy on black friday right..
It s become very noisy. Very crowded and your quality consumption of the public library goes down so it is driving consumption so there are only a very few. Where do you probably good. We have the true public.
Oh heaven economy some examples you might see your textbook radio is a public good that means. Everybody can radio as long as your only radio and also if one person listen to this channel. It wouldn t even tell you the quality of consumption of other people on the same channel tv is also public good not not a tv tv set. The tv station.
So for tv stations. Everybody can all watch the same tv station. So it doesn t suffer from driving consumption and also it doesn t suffer from excludable. It s sort of its credibility.
Another probably good that s listed in the textbook is your national defense. So national defense is also public good okay all right let me sit down when he doesn t talk about it that s not important guys. This this this chapter is very simple. Just couple definitions.
Ok. Also knows a free rider. So free rider is anybody who receive the benefit. But doesn t pay for it.
No you many of you guys. A free rider. Let me tell you why so you probably watch sesame street. Before well you probably wished mr.
Rogers neighborhood. You probably watched on reading rainbow. You probably watched on clifford the big red dog right and then thursday..
There was another show. It was the chinese cat house named show called was like cat named sawa. Something like that right so. All those shows you can find them on pbs.
Now if you never wrote a check to pbs that means you which is hope you use you benefit from the show. But i didn t pay for it you are free writer. Okay so free writer. Again is anybody who receive the benefit.
But doesn t pay for it. It s also almost freeloader okay so the free rider problem is therefore public good because it is not excludable. Everybody can all consume it so more than often your public good they re underpaid or underfunded. And under provided okay.
Because you know people just offer to pay for it. See what else talk about that s not important okay about this okay so one difficulty. We have regarding to public good is that it s hard to analyze what s the cause of benefit. So cost is easy.
We know how much it costs to provide a public good. But the problem is how much benefit does it bring to the economy. Now let s suppose economy is very small. So let s say become economy.
Only has ten people then one can ask each person how much they would need to pay for the public good so imagine let s say we take a show sesame street. So we can ask each of the ten comes to me says hey mr. And mrs. Wahoo.
How much are you wanted to pay for the sesame street and i will add it all together between all the councilmen email society. There will be our total benefit of this show sesame street. But that s a very small economy now you imagine our economy..
We have certain if any main people know can we survey. Everybody ask them about every single public good how much they value it that s impossible right so. It s very hard for our government to estimate how much our total benefit is from probably good so. That s why you know we know for sure how much cost is but the benefit is uncertain.
So that s why more than often we put a benefit lower than a cost. So that s why. Many of the public good they re underfunded and also under provided okay this all right. It s a common resource.
Common resource is not excludable. But a rubbing consumption. Many of the public good we call public good on our economy. Today they actually common resource because we cannot exclude people from consuming is good.
But they do suffer from driving consumption and because of the this this this characteristics common resource is is we re often abused and it s called a tragedy tragedy of the common so let s imagine all the fish in the ocean. Now we cannot exclude somebody front come swim in the fish. But it does suffer from driving consumption. So if everybody all consume the fish and eventually we just run fish right so so we deplete our resource.
So that s called tragedy of the common all right talk about this not important what else. It s one more thing i want to talk about before the end so copyright now one one fix for the common resource. Where the public good is to sign copywriting. Then once you have signed a property.
But the property right then once we know who owns which good then this legal legal right can be enforced and then we can stop the tragedy of common okay all right so that s it for this chapter. Have many question guys let me know and i will see you for chapter. ” ..
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