The goods in Question 1 which will be provided by a private producer without the government intervention and goods without government intervention.
Explanation of Solution
A private producer only deals with the supply of an excludable good or service and if the good is not excludable then the private producer would not be competent to charge the price for the cost of production. Therefore, in the case or situations from question 1, the private producer will not supply a public park and publicly announced information for a hurricane because these are non-excludable goods.
But the private producer would supply a cheese burrito and information from a password-protected website without government intervention because these goods are excludable.
Introduction: Excludable refers to the situation when according to people's willingness to pay, producers can prevent certain people from using or consuming goods and services. And, a rival in consumption means if one person consumes a good or service then it reduces the number of available goods and services for consumption by another.
A public good covers both non-excludable as well as non-rival. And, a private good is excludable and rival in consumption which may prevent people from consuming when one person consumes the same good.
Chapter 76 Solutions
Krugman's Economics For The Ap® Course
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