曼昆经济学原理英文版教案新部编本加习题答案11章PUBLIC GOODS AND COMMON RESOURCES.docx

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曼昆经济学原理英文版教案新部编本加习题答案11章PUBLICGOODSANDCOMMONRESOURCES

 

教师学科教案

[20–20学年度第__学期]

 

任教学科:

_____________

任教年级:

_____________

任教老师:

_____________

xx市实验学校

 

r11

WHAT’SNEWINTHESEVENTHEDITION:

Therearenomajorchangestothischapter.

LEARNINGOBJECTIVES:

Bytheendofthischapter,studentsshouldunderstand:

Øthedefiningcharacteristicsofpublicgoodsandcommonresources.

Øwhyprivatemarketsfailtoprovidepublicgoods.

Øsomeoftheimportantpublicgoodsinoureconomy.

Øwhythecost–benefitanalysisofpublicgoodsisbothnecessaryanddifficult.

Øwhypeopletendtousecommonresourcestoomuch.

Øsomeoftheimportantcommonresourcesinoureconomy.

CONTEXTANDPURPOSE:

Chapter11isthesecondchapterinathree-chaptersequenceontheeconomicsofthepublicsector.Chapter10addressedexternalities.Chapter11addressespublicgoodsandcommonresources—goodsforwhichitisdifficulttochargepricestousers.Chapter12willaddressthetaxsystem.

ThepurposeofChapter11istoaddressagroupofgoodsthatarefreetotheconsumer.Whengoodsarefree,marketforcesthatnormallyallocateresourcesareabsent.Therefore,freegoods,suchasplaygroundsandpublicparks,maynotbeproducedandconsumedintheproperamounts.Governmentcanpotentiallyremedythismarketfailureandimproveeconomicwell-being.

KEYPOINTS:

∙Goodsdifferinwhethertheyareexcludableandwhethertheyarerivalinconsumption.Agoodisexcludableifitispossibletopreventsomeonefromusingit.Agoodisrivalinconsumptionifoneperson’suseofthegoodreducesother’sabilitytousethesameunitofthegood.Marketsworkbestforprivategoods,whicharebothexcludableandrivalinconsumption.Marketsdonotworkaswellforothertypesofgoods.

∙Publicgoodsareneitherrivalinconsumptionnorexcludable.Examplesofpublicgoodsincludefireworksdisplays,nationaldefense,andthecreationoffundamentalknowledge.Becausepeoplearenotchargedfortheiruseofthepublicgood,theyhaveanincentivetofreeride,makingprivateprovisionofthegooduntenable.Therefore,governmentsprovidepublicgoods,basingtheirdecisionaboutthequantityofeachgoodoncost–benefitanalysis.

∙Commonresourcesarerivalinconsumptionbutnotexcludable.Examplesincludecommongrazingland,cleanair,andcongestedroads.Becausepeoplearenotchargedfortheiruseofcommonresources,theytendtousethemexcessively.Therefore,governmentsusevariousmethodstolimittheuseofcommonresources.

CHAPTEROUTLINE:

I.TheDifferentKindsofGoods

A.Whenclassifyingtypesofgoodsintheeconomy,twocharacteristicsshouldbeexamined.

1.Definitionofexcludability:

thepropertyofagoodwherebyapersoncanbepreventedfromusingit.

2.Definitionofrivalryinconsumption:

thepropertyofagoodwherebyoneperson’susediminishesotherpeople’suse.

B.Usingthesetwocharacteristics,goodscanbedividedintofourcategories.

1.Definitionofprivategoods:

goodsthatarebothexcludableandrivalinconsumption.

2.Definitionofpublicgoods:

goodsthatareneitherexcludablenorrivalinconsumption.

3.Definitionofcommonresources:

goodsthatarerivalinconsumptionbutnotexcludable.

4.Definitionofclubgoods:

goodsthatareexcludablebutnotrivalinconsumption.

Figure1

Rivalinconsumption?

Yes

No

Excludable?

Yes

PrivateGoods

▪ice-creamcones

▪clothing

▪congestedtollroads

ClubGoods

▪fireprotection

▪cableTV

▪uncongestedtollroads

No

CommonResources

▪fishintheocean

▪theenvironment

▪congestednontollroads

PublicGoods

▪nationaldefense

▪knowledge

▪uncongestednontollroads

C.Theboundarybetweenthecategoriesissometimesfuzzy.Whethergoodsareexcludableorrivalinconsumptionisoftenamatterofdegree.

D.Publicgoodsandcommonresourceseachcreateexternalitiesbecausetheyhavevalueyethavenopricebecausetheyarenotsoldinthemarketplace.Theseexternaleffectsimplythatmarketoutcomeswillbeinefficientintheabsenceofgovernmentinvolvementorprivateresolutionstocorrecttheexternality.

Activity1—PrivateGoods/PublicGoods:

ADemonstration

Type:

In-classdemonstration

Topics:

Publicandprivategoods

Materialsneeded:

Acandybar

Time:

10minutes

Classlimitations:

Worksinanysizeclass

Purpose

Thisexampleillustratesthedifferencebetweenpublicandprivategoods.

Instructions

Askforavolunteer.Givethevolunteeracandybarandaskhimorhertoeatit.

Whilethestudenteatsthecandybar,explainthatyoudonotwantthestudent’senjoymentofthecandytobemarredbytakingnotes.Offertodrawsomebeautifulartworkontheboardtoincreasethevolunteer’senjoyment.

Drawapictureontheboard.Alargeposteroraslideofrealartworkcouldbesubstituted.Askthevolunteerifheorsheisenjoyingthecandyandtheart.Asktheclassiftheygetanyenjoymentfromthecandy.Asktheclassiftheygetanyenjoymentfromtheart.

PointsforDiscussion

Thecandybarisaprivategood.Itisrivalinconsumptionandexcludable.Onlythevolunteergetstoenjoythecandy.

The“artwork”isneitherrivalinconsumptionnorexcludable.Thevolunteer’senjoymentdidnotdiminishtheenjoymentoftherestoftheclass.The“artwork”isapublicgood.

II.PublicGoods

A.Example:

afireworksdisplay.Itisnotexcludablebecauseitwouldbenearlyimpossibletokeepothersfromviewingitanditisnotrivalinconsumptionbecauseoneperson’senjoymentdoesnotprecludeothersfromenjoyingthefireworks.

Otherexamplesofpublicgoodsthatmaybeofinteresttostudentsincludehighwaysnowremoval,floodcontrol,andmosquitocontrol.Inalloftheseinstances,onecanarguethatgovernmentinterventionisnecessaryinordertoachieveeconomicefficiency.

B.TheFree-RiderProblem

1.Itwouldbedifficulttosellticketstothefireworksshowbecauseitisnotexcludable.

2.Thus,someindividualswouldgetabenefitfromtheshowwithoutpayingforit.

3.Definitionoffreerider:

apersonwhoreceivesthebenefitofagoodbutavoidspayingforit.

4.Morethanlikely,privateindividualsorfirmswillnotproducethefireworksshowbecauseitwouldnotbeprofitable.

5.Ifthesocialvalueofthefireworksshowisgreaterthanthecostofproducingit,itwouldbeefficientforthefireworksshowtobeproduced.

a.Thelocalgovernmentcansponsortheshowandchargeeachofitscitizenswithpartofthecost(intheformofatax).

b.Ifthetaxislessthanthevalueofthefireworksdisplaytoeachindividual,everyoneisbetteroff.

6.ThisisanotherdemonstrationofPrinciple#7:

Governmentscansometimesimprovemarketoutcomes.

Studentsoftenincorrectlybelievethatallgoodsandservicesprovidedbythegovernmentarepublicgoods.Anexampleofthisiseducation.Thiswouldbeagoodexampletousetoexplainthemeaningofexcludabilityandrivalryinconsumption.

B.SomeImportantPublicGoods

1.Nationaldefense

2.Basicresearch

3.Fightingpoverty

C.CaseStudy:

AreLighthousesPublicGoods?

1.Lighthousesareusedsothatshipscanmarkspecificlocationsandavoidtreacherouswaters.

2.Useofalighthouseisbothnonexcludableandnonrivalinconsumption.

3.Thus,mostlighthousesareprovidedbythegovernment.

4.In19th-centuryEngland,lighthouseswereoperatedmorelikeprivategoods.Theownersoflocalportswerechargedwiththeserviceandiftheydidnotpay,theownerofthelighthousesimplyturnedoffthelightandshipsavoidedstoppinginthatport.

D.TheDifficultJobofCost–BenefitAnalysis

Pointoutthedifferencesinthewayinwhichabusinessprovidesandfinancesitsproductsandthewayinwhichgovernmentsdothesame.Thiswillhelpstudentsseethedifferencebetweenthemarketprocessandthepoliticalprocessasalternativewaysofprovidinggoodsandservices.

 

1.Todecidewhetherornotitshouldfundapublicgood,thegovernmentmustconductastudyofthetotalbenefitsandcostsofthegood.

2.Definitionofcost-benefitanalysis:

astudythatcomparesthecostsandbenefitstosocietyofprovidingapublicgood.

3.Thisisverydifficulttodo,becausemeasuringhowmuchindividualswillvalueaspecificgoodisproblematic.

a.Quantifyingbenefitsisdifficultusingtheresultsfromaquestionnaire.

b.Respondentshavelittleincentivetotellthetruth.

4.Thisdifficultyimpliesthattheefficientsupplyofpublicgoodsismuchmorechallengingthantheefficientsupplyofprivategoods,becausebuyersoftheprivategoodrevealitsvaluetothesellers.

5.CaseStudy:

HowMuchIsaLifeWorth?

Beforetalkingaboutthissection,askstudentstowritedownthevalueoftheirlives.Askthemhowtheyarrivedatthisanswer.Thisisanicewaytoleadintothedifficultyofcost–benefitanalysis.

a.Example:

thedecisiontoplaceastoplightatabusyintersectiontoreducetheriskoffatalaccidents.

b.Thecostisknownindollarterms.Buthowcanweputthevalueofalifeindollarterms?

c.Somestudiesexaminethevalueofthelifetimeearningstheindividualcouldhavemade,butthisimpliesthatthelifeofsomeonewhoisdisabledorretiredhasnomonetaryvalue.

d.Economistsinsteadmaylookattherisksthatindividualsvoluntarilytakeandthosethattheyrequirecompensationfor.Workersinriskyoccupationsarepaidawagepremiumtotaketheserisks.Thisapproachgivesusanideaofthevaluethatanindividualplacesonhisorherlife.Studieshaveshownthisvaluetobeapproximately$10million.

III.CommonResources

A.Commonresourcesarenotexcludable,buttheyarerivalinconsumption.Thisimpliesthatpolicymakersneedtobeconcernedabouthowmuchisused.

B.

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