Answer to Question #276467 in Microeconomics for lisiochsner

Question

Public goods and common resources: define them and explain how their

production and use is affected by the allocation of property rights.

Answer 1

Solution:

A public good is a commodity or service that is provided without profit to all members of a society, either by the government or by a private individual or organization.

A common resource is a resource readily accessible to all members of the public. A common resource is one that can provide benefit to society but which is not owned by anybody in particular.

Property rights are constructs in economics for determining how a resource or economic good is used and owned. the stronger the set of property rights, the stronger the incentive to work, save, and invest, and the more effective the operation of the economy, thus producing more public goods a. The more effectively an economy operates, the more growth it will produce for any set of resources.