Use the distinction between the characteristics of private a

Use the distinction between the characteristics of private and public goods to determine whether the following should be produced through the market system or provided by government: (a) French fries, (b) airport screening, (c) court systems, (d) mail delivery, and (e) medical care. State why you answered as you did in each case.

Solution

Public goods are those goods easily available in the market and whose consumption does not affect the consumption of others.

Private goods are those goods whose consumption reduces the consumption of others.

French fries: This is a private good, since the stock of it could be finished after several uses.

Airport screening: This is a public good, since the job is endless for every visitors and flights.

Court system: This is a public good, since the court is open for each justice.

Mail delivery: This is a public good, since the service will never be stopped.

Medical care: This is a public good, since once care does not reduce the care of others.