Think about the goods and services provided by your local government.

a. Using the classification in Figure, explain which category each of the following goods falls into:

Police protection

Snow plowing

Education

Rural roads

City streets

b. Why do you think the government provides items that are not publicgoods?

Rival in consumption? Figure No Private Goods Club Goods Four Types of Goods Goods can be grouped into four categories according to two characteristics: (1) A good is excludable if people can be prevented from using it. (2) A good is rival in consumption if one person's use of the good diminishes other people's use of it. This diagram gives examples of goods in each category Fire protection -Cable TV Ice-eam cones . Congested tol roads .Uncongested tol roads Excludable? Common Resources Public Goods Fish in the ocean Tornado siren No The erironment . Congested nontoll roads -National defense Uncongested nontoll roads