lesson 20

In this essay there are going to be two topics: the first one is what are some of the the problems with the concept of public goods? While the second one is , describe the process by which the market economy tends toward an improvement in the standard of living.  The answer for  the first topic is : the problems with public goods is that you can’t exclude someone and/or people from see it such as, you can not prevent people from watching  either close where  it at or if someone is watching it from their house. Also, that you can not put a fee to pay it since it is a public good, it is free.  Another problem with it is that there would be freeriders and you wouldn’t get alot of money if there is alot of people at what you display.  The answer for the second topic is: on  a free market where there is little taxation or  none at all. The free market economy, business firms have to keep , save, and invest their profits. Use their profits  to buy capital goods. Capital goods allow them to produce more consumer goods at lower cost.  These lower costs  through competition  other firms to get your money. Want to sell yoou goods, they don’t want other firms to get the most. By doing this, it improves our standard living since,  they save and  invest in their profits and  buy capital goods  which by buying them , they created a good money spending cycle: since the people who own the capital goods first gets money  from the firms spend on other goods, and so on. For an example, firms pay the people who sells the capital goods . Those people, then spend on goods, and needs which the money oes to others who sells goods,bill collectors,rent and personal needs and/or people who installs security systems. – Asiyyah


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