Answer to Question #129001 in Economics of Enterprise for Vickiie

Question

How can one distinguish between private goods and public goods?
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Q.4.2
“Cash transfer programmes could influence the behaviour of recipients in ways that could undermine the poverty‐alleviating effects and cost‐effectiveness of these interventions” (Black et al. 2017).
Do you agree with this statement? Motivate your answer with a discussion.

Answer 1

Distinguishing private goods from public goods

Private goods are goods intended for resale as they are manufactured by private entities

to satisfy consumers needs examples including clothes, cosmetics

while public goods are goods provided by the government for the public to use freely or goods that naturally exists to the public for example roads, natural settings