Answer:
individuals will tend to become free riders, and private firms will have difficulty generating enough revenue to produce an efficient quantity of the good.
Explanation:
A public good is a good that is non excludable and non rivalrous. Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue
The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.
Because a public good is non-excludable, the problem of free rider increases so private firms would be unable to generate adequate revenue
Answer:
(a.) The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. – <em><u>This will fall under the category of Government Spending(G)</u></em>
Reason: In this case the government is utilizing money in order to construct highway that will benefit public.
(b.) Musashi buys a sweater made in Guatemala –<em><u>This will fall under the category of imports(M)</u></em>
Reason: The product/commodity is being produced outside domestic boundaries, hence it is calculated under imports
(c.) Rina gets a new refrigerator made in the United States. - <em><u>This will fall under the category of consumption(C)</u></em>
Reason: Commodities produced within the domestic boundaries and further consumed or bought within domestic boundaries will be calculated under consumption
(d.) Rina's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. - <em><u>This will fall under the category of exports(X)</u></em>
Reason: Here the maple syrup is being delivered to a third party living abroad so it will be calculated under export .
(e.) Musashi's employer upgrades all of its computer systems using U.S.-made parts. - <em><u>This will fall under the category of investment(I)</u></em>
Reason: Money spent to upgrade the system in order to increase productivity and this indeed will have an effect for a long duration. Therefore it'll be seen as an investment.
Answer: Private companies are among the most significant drivers of economic growth.
Explanation:
Creating jobs, increasing trade activity, and increasing the flow of goods, providing services to the poor, and paying regular taxes to the public sector are just some of the benefits that the economic system has of private companies. Paying for their obligations to the state results in the proceeds of funds coming into health care, education, and other vital elements of the state system.
