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Essay03 - Essay Example

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This means that a public good can be enjoyed by all members of the society without lessening its usefulness. Unlike a private good that individuals compete for its…
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Essay03

Download file to see previous pages... Even if one does not have the money to buy the product, an individual can still access it. An example is fireworks. Whether you pay for it or not, if it is set off everyone will enjoy the lights. In contrast, the accessibility of a private product is determined by the owner, and the buyer can do with it as he pleases once he purchases it. A private product, say a car, for instance, individuals have to compete to buy it, and once one buys it the buyer excludes others from buying it.
First, comparing costs and benefits in contagious disease control is extremely difficult because it requires examining needs and taking into account the constraints from which to compare them. Hence, determining the optimal utility for each person becomes difficult because there are those will overstate or understate its value (Samuelson & Marks, 483). Secondly, there is the difficulty of estimating the marginal benefits and marginal costs in money terms. As far as possible, the management of contagious disease must be based on minimum costs. However, it is difficult to determine the standard units when comparing costs and benefits (Samuelson & Marks, 475). Finally, it becomes difficult to compare costs and benefits of the program especially if there is unsatisfactory information (Samuelson & Marks, 484). Thus, true costs and benefits of contagious disease control can only be sufficiently compared when there is perfect information of the program (Samuelson & Marks, 484).
Basically, equity is often ignored based on the assumption that the gain by one person will offset the loss by another (Samuelson & Marks, 475). Thus, the marginal utility remains stable. Another rationale is that even if equity is unsatisfactory, often no one is made worse off. Rather, there is someone who is made better. The third reason is the lack of an objective way to evaluate the value of ...Download file to see next pagesRead More
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