Public Goods and Services

Public Goods and Services

Remember that one of the features of a mixed economy is that both government and private individuals/companies offer goods and services for sale in the market.

Those goods and services provided by government are called public goods and services.​

Examples of public goods and services here in the US include:

​infrastructure (roads, bridges, utilities, etc.)

​public health and safety

​education

Open Ended

Why do you think the government is involved to help produce goods and services like roads, schools, hospitals, etc.?

​Some of the reasons government does these things are:

They benefit everyone.

They would be too expensive for us to pay for individually.

They would be inefficient and complicated if we​ paid for them by ourselves.

They​ are available to all.

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These are the basic physical and organizational structures that we need to operate society.

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Examples include roads, ports, bridges, railroads, power supplies​, and buildings.

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​Infrastructure

Open Ended

How are public goods and services paid for?

​Imagine if we had to pay for all those things as individuals! Almost no one would be able to afford it. But when all our tax dollars are combined, it's possible to make those goods and services available to all. We still have to contribute in the form of fees for some of these. For example, we pay tolls for some highways. We pay monthly usage fees for water, electricity, and waste disposal. The availability and cost of these goods and services vary according to where you reside.

Public Health

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Many hospitals receive tax dollars to help them operate. ​This ensures that needed medical care is available. It also makes sure the care is there for all, regardless of financial status.

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​Public health includes services like local health departments. They offer services such as

vaccinations/immunizations

communicable disease testing

information about other social​ services

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​Public Safety

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This includes law enforcement, fire protection, ​disaster response, criminal justice, and other services.

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​Again -

Could you afford to hire your own personal bodyguard, fire fighter​, water purification system, military?

Me, neither!​

​And what about public education?

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The average cost of private school​ tuition is $12,000 per year. Most private schools offer fewer electives and specialized opportunities than public schools. And the tuition usually does not include textbooks, sports equipment, transportation, food, etc. Public education also offers a standardized curriculum.

Open Ended

Can you think of any other public goods and services we didn't mention?

​How about public parks and recreation facilities? senior citizen programs? public transportation? public parking areas?

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