Craft and StructureVery hardTwo economists on the lighthouse example
Craft and Structure practice question
Text 1
The lighthouse is the textbook public good: its beam reaches every passing ship, payers and free-riders alike, so no private builder can charge for it — government provision is the only path to lit coasts.
Text 2
The textbook skips the archives. For two centuries, private parties in Britain built and ran lighthouses, collecting 'light dues' from ships when they docked at nearby ports — imperfect pricing, but workable finance. The clean theoretical impossibility was, in practice, a functioning industry.
Based on the texts, how would the author of Text 2 most likely respond to Text 1's use of the lighthouse example?
- A. By citing historical cases in which private parties successfully financed lighthousesCorrect
- B. By agreeing that no lighthouse was ever privately funded
- C. By arguing that lighthouses were unnecessary for navigation
- D. By proposing that lighthouse keepers be paid higher wages
Answer: A. By citing historical cases in which private parties successfully financed lighthouses
Text 2's whole argument rests on the historical record of privately financed lights funded through port fees — exactly the rebuttal it would give to Text 1's textbook example.
Why the other answers are wrong
- B. By agreeing that no lighthouse was ever privately funded
- Text 2 asserts the opposite: private lighthouse finance existed for centuries.
- C. By arguing that lighthouses were unnecessary for navigation
- Neither text doubts lighthouses were needed; the dispute is who can fund them.
- D. By proposing that lighthouse keepers be paid higher wages
- Wages appear nowhere in either text.
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