question about economy
can someone solve these problems?
1. some consider a highway to be a public good. however, do additional users ever take away from your benefits of using a highway? is it possible to design a collection system for the use of a highway?
2. what external benefits are created when i buy and drive a gasoline-
electric hybrid car? how could the government attempt to promote the use of such vehicles by means of the tax system?
- 1 0 年前最佳解答
First and foremost, we need to understand the definition of a public good. A public good is a good that is non-rival and non-excludable. It means that the consumption of this particular kind of good do not reduce the amount of goods available for consumption by another person. Neither can you stop another person from consuming the good.
A good example of public good taken to the extreme would be air. The air that you breathe in would not significantly reduce the air that is available to another person and neither can you stop the person from breathing in air.
However, in my opinion, the definition of public good is highly theoretical and in a real world, it seems that there are not many goods that can match up the textbook definition of a public good wholly.
2007-10-29 11:46:21 補充：
A highway can be considered a partial public good since it is available to all road users and you can not stop another fellow motorist from using the highway. However, in terms of rivalry, additional users of the highway would in fact adhere the use of the highway by other motorists.
2007-10-29 11:49:58 補充：
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- sLv 71 0 年前
This is a Economy question? Looks more like a political policy question. Anyway, here is a few points. Hope they help.
1. those toll roads at USA east coast, said I-95, is a typical example of highway paid by the users. There are sections of I-95 interstate highway have being set up with toll booths and users pay by the distance and the axles of the vehicles. The more axles means heavier vehicles. They wear out the road more than a 2 axles automobile.
2. Other than saving the consumption of gasoline, a hybrid car imply less air pollution in the immediate area. Government can provide tax exemption to family, individual or corporation that purchase such car. Tax such as sale tax or income tax can be a good item to exempt due to their direct impact to tax payer.