Chapter 16, Problem 14AA

To determine

To ascertain: The five examples of public goods.

Explanation of Solution

Some of the examples of public goods include transportations, education, national defense, lighthouse, public parks, etc.

1. Transportation: When people are traveling on a highway, they are using a resource financed by federal and state funds.
2. Education: School, probably receives some form of aid from the local, state, or federal government.
3. National defense: To the degree that one person in a geographical area is protected from foreign assault or invasion, other individuals living in the area are also to be secured.
4. Lighthouse: This is a public good because it serves all the people and consumption of its service is equal and no one can exclude anyone from its consumption.
5. Public parks: Parks are open for all people whether they pay the tax or not. All are equally free to consume the service.