Providing public Goods

1
Providing public Goods
2
Public goods

• Public goods means a shared good or service for
  which it would be inefficient or impractical to
  make consumers pay or to exclude non payers.

3
Cost or benefits

• 1 The benefit to each individual is less than the
  cost that each would have to if it were provided
  privately
• 2. The total benefits to society are greater than
  the the total cost

4
Public sector and the private.

• Public sector the part of the economy that
  involes the transactions of the gonverment
• The private sector- the part of the economy that
  invloves transacrtions of individuals and
  buisnesses, would have little incentive to
  produce goods.

5
Free rider

• A free rider is someone who would not choose to
  pay for a certain good or service, but would get
  benefits of it anyway if it provided as a public
  good
• Example- Football team selling football cards to
  people. I didnt sell any, but still got benefits
  .

6
Market Failures

• Free riders are examples of market failure, a
  situation in which the market, on its own,
  doesnt distribute resources effciently.

7
QUIZZZ TIME !!!

• Give a example of a free rider.?
• What did I do to benefit myself?
• Give a example of a public goods.

8
VIDEOOOO

• http//www.youtube.com/watch?vmYtW1Ug7L_s