The government rations a variety of publicly provided private goods and impure p

Question

The government rations a variety of publicly provided private goods and impure public goods (in which there is congestion) in a variety of ways. Discuss how each of these is rationed, and consider the effect of alternative rationing systems: a. Public higher education b. Health services in the United Kingdom c. Yellowstone National Park What happens to a publicly provided good in which congestion can occur (such as a highway or swimming pool on a hot, sunny day), but in which no direct rationing system is employed?

Explanation / Answer

a) Education though known as public good which can be consumed by all and an essential right to achieve in life also includes price after a certain level. It is thus an impure public good. Students with high merit are provided with scholarship to achieve higher education where as students with low merit are left behind they cannot get the benefits of education and this normally happens among the poverty stricken people. Goverments rations the education system after a certain level. Students of richer class affords education through parents help where as poor household students are sometimes left behind .

b)Health system of United Kingdom also faces a similar situation like education. It is provided upto a certain level, higher treatments requires fees which has to be borne by the indiiduals. Goverment make sures that the cost associated with the treatment is low in Goverment hospitals but in Private hospitals the congestion of people is kept low by charging high fees.

c) In Yellowstone National Park system of fees should be started to avoid congestion. The fee should be kept low so that all can afford but at the same time it should also fix a certain number of people who can visit there to avoid congestion.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.