The document discusses public goods and services, private goods, and the differences between them. It explains that public goods are nonexcludable and jointly consumed, meaning many people can benefit from the good at once and non-payers cannot be prevented from using the good. Some key characteristics of public goods are shared consumption and non-exclusion. The document also discusses why governments provide public goods, giving examples of goods and services that are public or private.

1. Public Goods and Services Economics 1

2. Learning Targets I can define public goods, private goods, free rider, and taxes. I can explain the characteristics of public goods. I can compare public goods with private goods. I can define and explain the free rider problem. I can explain why the government provides public goods.

3. Modern Economies Most developed economies have aspects of a mixed economy. Mixed economies provide goods and services through markets and through federal, state, and local governments. Can you explain why a government might provide public goods?

4. Apple vs. Police Protection If you don't pay for an apple at the store, can you be kept from receiving an apple at the store? If you don't pay for police protection, can you be prevented from receiving police protection? Who benefits from consuming an apple? Who benefits from police protection?

5. Private vs. Public Private Each unit produced can be priced and sold to individuals. Each unit benefits the buyer exclusively. Exclusions can occur. Sold through markets. Public Consumed collectively by people whether or not they pay for the good. Non-payers cannot be excluded from using the good.

6. Characteristics of Public Goods Shared consumption-many people receive the benefits of a good or service at one time. Non-exclusion-people cannot be prevented from using a good or service even if they did not pay for the good or service.

7. Public or Private!? Ice Cream National Weather Service Potato Chips Movie Fire Protection Library Mosquito Control Personal Computer Fireworks Display