Question

Think of other examples where collective provision of goods and services is cheaper than individual provision.

Answer 1

1. Locality Security: Hiring one security guard for an entire residential area is far less expensive than hiring a guard for each individual.
2. Mass Transportation: Running public buses or metro networks saves fuel and minimizes traffic congestion when compared to driving a private car.
3. Community Education: Building public schools allows hundreds of children to study reasonably, whereas private home tutoring for each child is too expensive.
4. Public Sanitation: Organizing community garbage collection and pest control sprays keeps the entire region clean at a low shared cost.
5. Ration Systems (PDS): Procuring and distributing food grains through government ration stores ensures enough nourishment at a lower cost than individual retail purchases.
6. Street Lighting: Installing public street lamps makes entire roads safer for everyone, which would be impossible with individual family efforts.