Governments provide goods and services that benefit many people simultaneously. These goods and services, such as national defense, infrastructure like roads, and emergency services, would likely not be available if individuals had to provide them alone. Governments pay for these goods and services through tax revenue collected from income taxes, sales taxes, property taxes, and other fees. They also borrow funds through issuing bonds. This allows governments to promote the general welfare of society.

1. Goods and Services Provided by
Government
SOL CE 13b

2. Warm-Up
1. Governments benefit when individuals and
businesses make a profit because they will use the
tax revenue to —
A create more businesses.
B place more restrictions on businesses.
C provide public goods and services to the community.
D discourage other businesses from competing with the
successful businesses.
2. The type of economy a country has is determined
by the —
F amount of government involvement in decision making.
G number of consumers and producers in the marketplace.
H profit motive of its people.
J vote of its citizens.

3. Quiz
1. When taxes increase, what happens to
consumer spending ?
2. When government borrowing decreases,
what happens to consumer borrowing?
3. When government spending increases,
what happens to demand?
4. When government spending decreases,
what happens to taxes?
5. When government lowers taxes, what
happens to consumer spending?

4. SET
 “…to promote the general
welfare…”
 What was the founding fathers’ intent? How is that
being handled today? Why was there a focus on this
concept? How does the government fulfill this goal?
Think back to the last class and tell me what are
some public goods and services we talked about.
What makes these goods and services “public?”
Which type of economies has all public goods and
services? Why do they provide these services?
Today we are going to explore the reasons our
government provides these goods and services.

5. Activity 1
Read page 109 in SOL
Coach Book and
complete Graphic
Organizer.

6. Goods and Services Provided by
Government
 E.Q. What types of goods and services do
governments provide? How do governments pay for
the goods and services they provide?

7. Goods and Services Provided by
Government
1. Why do businesses
provide goods and
services?
To make a profit.

8. Goods and Services Provided by
Government
2 . What things does society
need that businesses cannot
easily provide?
 Examples would include
national defense (The
armed forces), law
enforcement, etc.

10. Goods and Services Provided by
Government
 Governments must
PAY
______________ for goods
and services they
PROVIDE
____________________.

11. Goods and Services Provided by
Government
1.What is the primary way that
governments raise the funds to
pay for goods and services?
 Income taxes are the largest
source of revenue (amount
coming in for the federal
government).

12. Goods and Services Provided by
Government
 What is income tax?
 A tax on the amount of an
individual’s wages or a business’s
profits.
 What is a sales tax?
 Taxes added to the price of a good
or service when it is sold.

13. Goods and Services Provided by
Government
 What is a property tax?
 When people pay tax on the
value of certain property
they own, such as land and
houses.

14. Goods and Services Provided by
Government
 How does the government borrow
money?
 A bond is a government’s promise
to repay a loan at a later date. The
federal government borrows
money by selling different types of
Treasury bonds. State, city, and
local governments sell municipal
bonds.

15. Goods and Services Provided by
Government
 Explain how individuals pay for
the goods and services provided
by governments.
 Individuals pay for goods and
services provided by
governments through taxes:
income tax, property tax, or
sales tax.

16. What types of goods and services do
governments provide?
 Provide benefits to many
simultaneously
 Would not likely be available if
individuals had to provide them
 Include such things as interstate
highways, postal service, and national
defense

17. How do governments pay for the goods and
services they provide?
 Through tax revenue
 Through borrowed funds
 Through fees (e.g., park
entrance fees)

18. Word Wall Activity
 Vocabulary Chain Game
 When the word is selected, you
must provide the definition of the
word. You must also relate it to
the last word. OR you can choose
two previous words to relate your
word to.

19. Honors
Create a crossword,
including hints using 15
of the vocabulary words.

20. Closure: Exit Ticket
What should an expert in
civics know about Public
Goods and Services.
List the top 5.