AP Micro 11 by Savannah Julius https://padlet.com/8juliuss/apmicro11 Public Goods and Common Resources en-us 2017-12-14 00:56:01 UTC 2024-07-10 17:11:42 UTC hello@padlet.com https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcQOFjw9ccyhsc77I0mLnNo64USS_2YbU5JxLrl_HF8hbVHWwZsL Quizlet 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216019900 https://quizlet.com/_473dvo]]> 2017-12-14 00:59:03 UTC https://padlet.com/8juliuss/apmicro11/wish/216019900 Frequent Errors 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216019924 https://docs.google.com/document/d/1wJNr0KpYT7Ui1DJg9ioEZTZYNLAEiMrnpSnj-l0G4-w/edit]]> 2017-12-14 00:59:15 UTC https://padlet.com/8juliuss/apmicro11/wish/216019924 4 groups 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216019946 1. Private
2. Public
3. Common Resource
4. Natural Monopoly 

--> depend on excludability and rivalry in consumption]]> 2017-12-14 00:59:30 UTC https://padlet.com/8juliuss/apmicro11/wish/216019946 excludability 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216020024 a person can be prevented from using the good]]> 2017-12-14 01:00:14 UTC https://padlet.com/8juliuss/apmicro11/wish/216020024 rivalry in consumption 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216020061 one person's use of the good diminishes other people's use]]> 2017-12-14 01:00:33 UTC https://padlet.com/8juliuss/apmicro11/wish/216020061 Free-Rider Problem 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216021288 free-rider problem is a market failure because the external benefits (externalities) are not taken into account]]> 2017-12-14 01:12:35 UTC https://padlet.com/8juliuss/apmicro11/wish/216021288 Because public goods are not excludable, the free-rider problem prevents the private market from supplying the goods 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216021387 the government can provide the public good through tax revenue though]]> 2017-12-14 01:13:16 UTC https://padlet.com/8juliuss/apmicro11/wish/216021387 Some Important Public Goods 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216021472 2017-12-14 01:14:01 UTC https://padlet.com/8juliuss/apmicro11/wish/216021472 National Defense 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216021480 most expensive public good]]> 2017-12-14 01:14:07 UTC https://padlet.com/8juliuss/apmicro11/wish/216021480 Basic Research 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216021510 general knowledge (not tech. spillover)
--> because of free-rider problem, society usually devotes too few resources to creating new knowledge]]> 2017-12-14 01:14:24 UTC https://padlet.com/8juliuss/apmicro11/wish/216021510 Fighting Poverty 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216021570 antipoverty and welfare programs are deemed public goods by supporters of the programs]]> 2017-12-14 01:15:03 UTC https://padlet.com/8juliuss/apmicro11/wish/216021570 Cost-Benefit Analysis 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216021632
  • impossible to price an abstract value or benefit
    • rough estimate at best
    • ]]>     2017-12-14 01:15:39 UTC https://padlet.com/8juliuss/apmicro11/wish/216021632     Tragedy of the Commons EXPLAINED 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216022205 https://www.youtube.com/watch?v=jSuETYEgY68

    http://www.criticalcommons.org/Members/economicstube/clips/pee_in_pool.wmv/view ]]>     2017-12-14 01:21:40 UTC https://padlet.com/8juliuss/apmicro11/wish/216022205     Tragedy of the Commons 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216022395 number of users of the good increase while the amount of the good available stays constant..... ISSUE!!!
     - social and private incentives differ
    •  externality of depleting the available goods

    Can be turned into a private good sometimes
    ]]>     2017-12-14 01:23:34 UTC https://padlet.com/8juliuss/apmicro11/wish/216022395     Some Important Common Resources 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216022635 private decision makers use common resources too much]]> 2017-12-14 01:25:07 UTC https://padlet.com/8juliuss/apmicro11/wish/216022635 Clean Air and Water 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216022640 government regulation tries to avoid complete environmental degradation]]> 2017-12-14 01:25:11 UTC https://padlet.com/8juliuss/apmicro11/wish/216022640 Congested Roads 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216022693
  • open roads  = public good
  • congested roads = common resource
    • the use of a crowded road diminishes the other people's use because traffic increases
      • rival in consumption
  • however, a TOLL road (congested or not) is a private good
    • ]]>     2017-12-14 01:25:39 UTC https://padlet.com/8juliuss/apmicro11/wish/216022693     Fish, Whales, and Other Wildlife 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216022795 ocean = least regulated common resource
    excessive fishing can destroy its commercial value]]>     2017-12-14 01:26:47 UTC https://padlet.com/8juliuss/apmicro11/wish/216022795     Free-Rider Problem Example 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216022874 private company wanting to put on a fireworks display when there are already public ones to view, free of charge]]> 2017-12-14 01:27:35 UTC https://padlet.com/8juliuss/apmicro11/wish/216022874 Private Good 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216023100 clothing]]> 2017-12-14 01:29:28 UTC https://padlet.com/8juliuss/apmicro11/wish/216023100 Public Good 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216023112 national defense]]> 2017-12-14 01:29:36 UTC https://padlet.com/8juliuss/apmicro11/wish/216023112 Common Resource 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216023124 fish in the ocean]]> 2017-12-14 01:29:47 UTC https://padlet.com/8juliuss/apmicro11/wish/216023124 Natural Monopoly 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216023139 cable TV]]> 2017-12-14 01:29:56 UTC https://padlet.com/8juliuss/apmicro11/wish/216023139 Oil Pools 8juliuss https://padlet.com/8juliuss/apmicro11/wish/216023211 where the oil pool crosses several pieces of property (so who owns it!?)]]> 2017-12-14 01:30:40 UTC https://padlet.com/8juliuss/apmicro11/wish/216023211