Answer to Question #66563 in Economics for Merjola

Question

Think of a policy area in which you feel there should be more public goods (for example: housing, health care, transportation, education, or any other big policy area.) Briefly discuss why you think it would be more efficient to have more public goods/services in the area. What trade-offs in private goods and services would you expect to see? What method of paying for the new public goods you propose do you recommend? Why?

Answer 1

Public goods normally have 2 features: joint consumption and non-exclusion (no one can be excluded from using them).

I think that there must be more public goods in the area of education. This is because world’s economy gradually transforms into information and innovation-driven (fifth technological order). Therefore, investing public funds in this and related sectors will potentially bring benefit to its economy and will allow the country to adapt to new conditions of international competition.