Question from Past Microeconomics Qualifying ExamEdit
Spring 2005 - Section I, Question nine, George Mason University
T,F,U. State first whether the following statements are true, false or uncertain. Then briefly explain your resaoning in four or five sentences. You may sue a graph if it helps clairify your answer.
A public good is any good supplied by the government.
False. A Public Good is defined as being non-rival and non-exclusive, meaning that my consumption of the good doesn't preclude your consumption of it, and that I cannot be excluded from the consumption of the good independent of my contribution to it. This definition isn't restricted to goods provided by government exclusively. Also, government-provided goods aren't soley public either. Government issued drivers licenses or registrations, for example, are exclusive, and play grounds provided by private investors may be non-exclusive.