<p> Providing Public Goods Economics E. Napp</p><p>1) What is a public good? ______</p><p>List three examples of public goods: ______</p><p>List two reasons it would be impractical to make individuals or companies provide these goods: ______</p><p>How are public goods paid for? ______</p><p>Who creates public goods? ______</p><p>2) A free rider is a person who would not choose to pay for a certain good or service, but who would benefit anyway if it were provided as a public good.</p><p>Why are the majority of us free riders at heart? ______</p><p>How does the government address the problem of the free rider? ______</p><p>3) What is a market failure? ______What does the government do when a market failure occurs? ______</p><p>4) List two differences between the public sector and the private sector: ______</p><p>5) What is an externality? ______</p><p>Externalities can be positive or negative. Why? ______</p><p>Provide two examples of positive externalities: ______</p><p>Provide two examples of negative externalities: ______</p><p>Give an example of the government’s attempts to encourage positive externalities: ______</p><p>Give an example of the government’s attempts to limit negative externalities: ______</p><p>6) After studying this lesson, why do you think taxation exists? ______</p>