Reference no: EM133809940

Assignment:

Obion County Tennessee does not have fire protection services. Residents of Obion County have the opportunity to pay an annual $75 subscription fee to the city of Fulton to receive fire protection. The residents of Obion County do not pay taxes to the city of Fulton. Thus, if they want to receive fire protection from the city of Fulton, they have to pay the subscription fee. Otherwise, the citizens of Fulton are paying the cost of fire protection for people who are not Fulton citizens.

In your discussion post think beyond the emotional state of the Cranicks to answer the following:

1. This question should be answered based on the definition for private goods and/or public goods. When the fire fighters would not put out the fire of those who did not pay, were they treating fire protection like a private good or a public good? Explain your answer. There is a correct answer.

2. This question should be answered based on the definition for free riders. Explain how the Cranicks want to be free riders.

3. Why is it important that the fee must be paid annually, instead of paid only when fire protection is needed?

4. This question should be answered based on the definition for private goods and/or public goods. If fire protection can exclude those who do not pay (like a private good), why is it treated like a public good (tax citizens to provide service to all)?

5. Should the citizens of Fulton have to pay to protect the property of people who do not pay taxes to the city?

6. What would happen if a Fulton City resident needed fire protection at the same time the Cranicks did? Would it have been right for a tax-paying citizen of Fulton to be denied fire protection because the Fulton fire fighters were protecting a non-payer's home?