Providing Public Goods



Providing Public Goods

Economics E. Napp

1) What is a public good?

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List three examples of public goods:

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List two reasons it would be impractical to make individuals or companies provide these goods:

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How are public goods paid for?

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Who creates public goods?

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2) A free rider is a person who would not choose to pay for a certain good or service, but who would benefit anyway if it were provided as a public good.

Why are the majority of us free riders at heart?

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How does the government address the problem of the free rider?

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3) What is a market failure?

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What does the government do when a market failure occurs?

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4) List two differences between the public sector and the private sector:

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5) What is an externality?

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Externalities can be positive or negative. Why?

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Provide two examples of positive externalities:

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Provide two examples of negative externalities:

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Give an example of the government’s attempts to encourage positive externalities:

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Give an example of the government’s attempts to limit negative externalities:

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6) After studying this lesson, why do you think taxation exists?

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