1. Public & Privates good

2. What makes a good or service public?
It’s free for everyone to use at anytime
Impractical to pay for it individually and to exclude non payers
What makes a good or service public?

3. What if you had to pay for this individually….?

5. What makes a good or service public?
It’s free for everyone to use
Impractical to pay for it individually and exclude non payers
Is usually provided by the government
Can be used as many times without reducing the benefit to others
For example….
What makes a good or service public?

6. What are the benefits of this…?

7. YES OR NO?
Public Good or Service

13. They use the cost/benefit analysis!
When do governments decide to produce something as a public good or service?
They use the cost/benefit analysis!

14. Two Step: Cost benefit analysis
First, if the costs outweigh the benefits for the paying individual, then the analysis moves to the next step
If the benefits outweigh the costs when the government pays, then it becomes a public good/service.

16. Final Question
Do you think ALL schools should be public or private? They can only be one or the other. Please provide a few economic reasons to explain your answer, you can also add non economic reasons
Answer this in your bell work.