Question

Role of Government 1. Could local fire departments be privately operated, with their services sold directly to customers? What problems would be involved in such a system? Problems: Chapter 2

Answer 1

1.

It cannot be sold privately to the customers, because fire is contagious in nature and it spreads fast. To control and prevent the fire, it is important for the fire safety service providers to provide safeguard to everyone in the society. It is the reason that fire department and its services are kept as a public good and its services are given to everyone. If it is done privately to customers, then there will be different problems. The first problem will be its lack of effectiveness. A fire can have its source in that place that may not be the customer of fire department. Not working on the source of fire, will make the operation to be ineffective. The second problem is the chaos in the society, because fire causes huge losses, to the lives and property. Hence, it has a severe effect upon the society and people go against the elected officials. The third problem is the increase in crime rate, when people lose the lives of their beloved people and property as well and government does not do anything for them. These people can revolt and common citizens suffer.

So, to prevent above problems, fire department services cannot be sold directly to the customers.

2.

It will be a perfectly inelastic demand curve or a vertical line of a demand curve. It is not realistic, because getting a grade, also depends upon the performance of other students as well as his own performance. Further, he also has the limitations to pay.