Providing for People Public Goods

A shared good or service Impractical or inefficient to 1. make consumers pay individually 2. Exclude nonpayers- 48% no taxes Roads and dams good examples No reduction in benefit through use Why public goods? Benefit greater than cost both to individuals and society as whole

Public Goods Public Sector- part of economy that involves transactions of federal government Private Sector-part of economy that involves individuals and business only Free Rider-People who don’t want/pay for the public service but get benefits anyway. Fire Services/New Freeway examples Market Failures- situation where the market on its own fails to distribute resources well

Externalities-economic side effects that generates costs/benefits Dam and Lake-Positives Swimming Boating Fishing Lakefront views Dam and Lake-Negatives Loss of wildlife habitat Disruption of fish Overcrowding due to tourism Noise from racing boats/watercraft

Government and externalities Wants positive externalities Education-students/society benefit Limit negative externalities How do they limit? Regulations/laws Clean air act Emissions, plant standards etc,,