Question

What kind of good is it? Determine whether each of the following goods is a private good, a public good, a common resource, or a club good.

a)A large, beautiful fountain in a park

b)A dock on a lake that is open to the public

c)A new drone that you take turns flying with your friends

Answer 1

(a) Public good

(b) Common resource

(c) Private good

Step-by-step explanation:

Public goods refers to the goods which are having non rival and non excludable characterstics.

Private goods refers to the goods which are having rival and excludable characterstics.

(a) It is a public good because it is freely accessible to all the people and one person's consumption doesn't affect the consumption of other person which means that other person get the same level of satisfaction.

(b) It is not a public good because it is available at a free of cost. People have to pay certain amount for the dock. It is a common resource which is expensive and rival in nature.

(c) It is a private good because the consumption is fully dependent upon the private ownership.