Question

Page 235 7.3. What are the challenges of providing nonexcludable goods? Place the events leading to deforestation in Haiti in chronological sequence. Start by clicking the first item in the sequence or dragging it here population growthunrestricted loggingerosion and permanent damagelush, tropical vegetationdeforestation, resulting in soil exposureincreased demand for timber and charcoal

Answer 1

It refers to public goods that cannot exclude a certain person or group of persons from using such goods. So it is available for everyone.

Challenges occur when non excludable goods deplete.

Think about a fisherman, if he is catching not more than 5000 fishes from a certain pond then the fish population will be sustainable. But what if a rival arrives?

Both of them will try to catch the fish more than the other one. What will happen?

All the fishes of the vond will just vanish.

So these type of goods should be controlled by the government.

Market fails to provide public goods because:-It is difficult to exclude nonpayers from consumption-Public goods can be consumed by many at a time.E.g., you do the homework and post the solution online for classmates to download. -This is public good.-Your classmates can download your homework solution without paying for it, and get a good grade.Free rider problem: someone can receive the benefit without paying for it.

Events leading to deforestation in order-
1 Lush, topical vegetation
2 Population growth
3 Increased demand for timber and charcoal
4 Unrestricted logging
5 Deforestation, resulting in soil exposure
6 Erosion and permanent damage