#2. If Israel’s private dome is so effective why doesn’t a private company produce it and sell its services directly to customers? Because of the free ride problem which occurs when exclusion isn’t possible to others who don’t pay their share for a public good. Why would anyone pay for the protection of israel’s private dome when their neighbor is willing and able to foot the bill?
#3 If everyone seeks a free ride, what mix of output will be produced in figure 4.2? It would be a Suboptimal output as everyone would be left waiting for someone to foot the bill for the public goods. Why would anyone voluntarily contribute to the purchase of public goods like flood control or snow removal? Because they see it as everyone's responsibility to share in the funding of public goods for their community, city, state, or country. As well as seeing the necessity of public goods in …show more content…
Because they’re used in selective city/ state shows to celebrate a national holiday funded by tax dollars and open to the public. Allowing for those who don’t contribute the capability to “free ride” by viewing the shows. Who should pay for them? Each person viewing the show should be a taxpayer unfortunately this isn’t going to be the case. What about airport security? Although, some question their methods used in providing safer travels their overall function is to protect everyone in their expenditures. In this sense, I think it can be considered a public good and one of the highest importance as