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A public bad is a negative condition that impacts many individuals concurrently. A key characteristic of a public bad is its non-rival nature, which means that one person's experience of its negative effects does not diminish the impact on others. For instance, air pollution is a public bad because it affects a large population simultaneously, and one person breathing the polluted air does not reduce its harm to others.

Public Bads

Air pollution is a classic example of a public bad. It is non-rival because one person's suffering from its effects does not diminish the suffering of others, and it affects many people at the same time.

Example of a Public Bad: Air Pollution

Atmospheric CO2 serves as an example of a global public bad. Its negative impact is felt worldwide, and it is non-rival because one person experiencing its effects does not lessen the impact on others.

Example of a Global Public Bad: Atmospheric CO2

For public bads, the concept of excludability is analogous to that for goods. It refers to the possibility of protecting individuals from experiencing the negative effects of the public bad.

Excludability of Public Bads

A factory emits a persistent, unpleasant odor that blankets a nearby town. Which of the following statements best analyzes why this odor qualifies as a public bad?

Based on the provided scenario, analyze the most likely economic rationale for the founder's argument to set a high wage and explain the expected consequence of this strategy for the local labor market for developers.

Wage Strategy at a Tech Startup

Consider a market where the current price for a product is set at $15. At this price, producers are willing to supply 500 units, but consumers are only willing to buy 300 units. Based on this information, which of the following statements best analyzes the current state of the market and the tendency for change?

A single household's clogged drain creates a foul smell confined to their property. In the same city, a widespread power outage during a heatwave causes discomfort for thousands of residents. Analyze both scenarios and explain why the discomfort from the power outage is classified as a public bad, while the smell from the drain is not.

Identifying a Public Bad

True or False: A large landfill that emits a foul odor affecting a nearby town is considered a public bad primarily because the town cannot easily prevent the smell from reaching its residents.

A large-scale algae bloom occurs in a public lake, making the water unsightly and producing a strong, unpleasant odor that affects the entire lakeside community. The presence of the algae does not physically prevent anyone from visiting the lakefront, but it significantly diminishes the enjoyment for all residents and visitors. Analyze this situation and explain whether the algae bloom qualifies as a public bad, justifying your answer based on its primary defining characteristic.

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