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Think about the goods and services provided by your local government.a. Using the classification in Figure 1, explain which category each of the following goods falls into:$\bullet$ police protection$\bullet$ snow plowing$\bullet$ education$\bullet$ rural roads$\bullet$ city streetsb. Why do you think the government provides items that are not public goods?
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Yi Chun Lin
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Chapter 11
Public Goods and Common Resources
The Economics of the Public Sector
Introduction
Markets and Welfare
Rahma A.
April 2, 2021
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this example. We're discussing the different types of goods where we have public goods, private goods, common resources and club goods. So let's go through this list here. We have police protection and police protection here falls into the category of being a public good, and it falls into that category because it's considered non excludable, meaning that everybody has access to it. It's also non rival. We don't have competition existing within that market for that good, and the consumption of one person for police protection doesn't affect the consumption of another person. Right. Police protection is available to everybody. Then we have snow plowing and with snowplowing, we see it as a club good and we see that because we have to pay for it. But it is available to everybody if you pay for it. So we're seeing that it's excludable, but it's also non rival, so it's not right because there's no competition for it, but its excludable, because we get it if we pay for it. Education now is considered a public good, and again that's because it is non excludable and non rival. Real roads and city streets are also going to fall into this category of public goods for the same reason they're non excludable and their non rival, and that's what really makes a public good public good. So now we might want to ask ourselves, especially in this case of snowplowing, where we identified as being a club good rather than a public good. We want to know. Why might the government provide any items that are not these public goods? Because if we think about all of these police protection, snowplowing education and rolled in the streets, these are all government provided good. So why would they give us something that's a club good and not a public good? Well, it comes down to at the end of the day of the fact that private companies may not want to produce that good, because there's not a whole lot of profit in snow plowing right, so we can consider this is non profitable, meaning that no private company is going to be willing to take that on if they're only going to lose money as a result. So it's in that case that the government will step in. The government is then able to provide that service or provide that good and keep prices nice and low for the public
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