Characteristics of Goods, Public Goods, and Market Failures

“Once a public good is produced, anyone can enjoy it, even those who did not pay for its consumption.” This statement describes which economic concept?

• An absence of private property rights

• Free-rider problem

• Government Failure

Which of the following is not a public good?

• Street Lights

• The Army

• Buses

• Flood Control Systems

Is public transport a public good?

• Yes

• No

Which best describes a public good?

• A good provided by the government 
• A good purchased by individuals
• A good that exists only in a free market
• A good that produces no externalites

A market failure is best described as

• The idea that market forces of supply and demand always provide the maximum benefit for society
• The idea that market forces of supply and demand do not always provide the maximum benefit for society
• The concept that a decision made by one party can have negative effects on another party
• The concept that a decision made by one party can have positive effects on another party

Which is not an example of a public good?

• Legacy High School
• Big Dry Creek Open Space
• Target
• Broomfield Water

Private businesses cannot always provide goods and services

• Profitably
• Fairly
• Safely
• All of the above

Which is not an example of a publicly owned industry intended to provide goods and services more efficiently to the public?

• Postal service

• Public transportation

• Airline industry

• Utilities such as gas, water, electric

Market failures occur when

• the accumulation of wealth in the free market is shared between a large group of people

• a command economy increases production

• the economy has a strong GDP and low interest rates

• the distribution of goods and services in the free market is not efficient and leads to loss of social wellbeing

What is one reason that local law enforcement is considered a public good?

• Everyone in the community benefits from it.

• Nobody in the community has to pay for it.

• Private firms make a profit from producing it.

• Individual citizens pay directly for it.