Question

For which of the following services is public supply likely to be superior to private supply? Discuss each service AND justify your answers.

a.) prison;

b.) schooling;

c.) vaccination;

d.) housing.

Answer 1

a. Prison: In case of prisons, public supply is superior than private supply because prisons are mainly meant to keep the prisoners and in return do not have profits incentive for the producer of the prison, thus, it is better that government provides this prison service.'

b. Schooling - Education is a merit good and educated children are the future of the nation. there are both private schools are public schools these days. This is because everyone cannot afford to send their children to private schools where the fees are very high, thus pubic schools cater to the demand of others.

c. Vaccination - Public supply in this case is superior to private supply because vaccination should be provided free to all as it prevent infections and diseases in the country and make the people of the country healthy.

d. Housing : It should be supplied by private agencies but the government intervention is needed is fixing a price ceiling for houses so that all the people of the country have their shelter.