Think about the goods and services provided by your local government.Using the classification in Figure 1, explain which category each of the following goods falls into: a. police protection b. snow plowing  c. education d. rural roads.  e. city streets 2. Why do you think the government provides items that are not public goods?

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Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.9P
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  1. Think about the goods and services provided by your local government.Using the classification in Figure 1, explain which category each of the following goods falls into:

a. police protection

b. snow plowing 

c. education

d. rural roads. 

e. city streets

2. Why do you think the government provides items that are not public goods?

Four Types of Goods
No
Club Goods
Ice-cream cones
• Fire protection
Clothing
• Cable TV
• Congested toll roads
• Uncongested toll roads
Excludable?
Common Resources
Public Goods
No
Tornado siren
Fish in the ocean
The environment
National defense
• Congested nontoll roads
• Uncongested nontoll roads
Goods can be grouped into four categories according to two characteristics: (1) A
good is excludable if people can be prevented from using it. (2) A good is rival in
consumption if one person's use of the good diminishes other people's use of it. This
diagram gives examples of goods in each category.
Yes
Yes
Private Goods
Rival in consumption?
Transcribed Image Text:Four Types of Goods No Club Goods Ice-cream cones • Fire protection Clothing • Cable TV • Congested toll roads • Uncongested toll roads Excludable? Common Resources Public Goods No Tornado siren Fish in the ocean The environment National defense • Congested nontoll roads • Uncongested nontoll roads Goods can be grouped into four categories according to two characteristics: (1) A good is excludable if people can be prevented from using it. (2) A good is rival in consumption if one person's use of the good diminishes other people's use of it. This diagram gives examples of goods in each category. Yes Yes Private Goods Rival in consumption?
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