TheBusinessProfessor, Author at TheBusinessProfessor

Role of Government in Paying for Public Goods

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Role of Government in Paying for Public Goods?The key insight in paying for public goods is to find a way of assuring that everyone will make a contribution and to prevent free riders. For example, if people come together through the political process and...

Poverty Line – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Poverty Line?Poverty is measured by the number of people who fall below a certain level of income—called the poverty line—that defines the income one needs for a basic standard of living. The US poverty line has traditionally been based on the cost of a...

Free Rider Problem for Public Goods?

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Free Rider Problem for Public Goods?Private companies find it difficult to produce public goods. If a good or service is nonexcludable, like national defense, so that it is impossible or very costly to exclude people from using this good or service, then...

Tragedy of Commons – Common Resources?

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Tragedy of Commons for Common Resources?There are some goods that do not fall neatly into the categories of private good or public good. While it is easy to classify a pizza as a private good and a city park as a public good, what about an item that is...

Public Safety Net – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Public Safety Net?The U.S. government has implemented a number of programs to assist those below the poverty line and those who have incomes just above the poverty line, to whom we refer as the near-poor. Such programs are called the safety net, to...

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