Posted by Christian on Thursday, May 10, 2007 at 9:06am.
You find out that your aunt works for a defense manufacturing company that has several defense contracts with the government. She tells you that she works for a team that is producing a communications satellite. What kind of good is the satellite? Is it necessary for the government to provide communications satellites? Why or why not?
I think the satellite is a public good but I'm not sure. I think it is necessary for the government to provide the communication satellites but I'm not sure about that either. Could someone please help me out with this?
I really dont know the answers to your questions. However, I suggest you go back to first principals. First research what it means for a good to be a public good. Then ask does a communications satellite fall into that category (entirely, largely, partially, a bit, not at all). Second, research those general cases where should provide to the public a good or service. Again, ask whether a communications satellite falls into this category.
Lottsa luck
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