Activity 3: Check for Understanding - Score Guide

1. What is non-exclusion? (the inability to exclude someone who doesn't pay for a good or service from benefiting from that good or service)
2. What is shared consumption? (many people benefiting from the consumption of a good or service at the same time)
3. Give examples of public goods. (national defense, police protection, streetlights, roads)
4. What is a free rider? (someone who consumes a good or service without paying for it)
5. Why aren't public goods provided in private markets? (Producers can't exclude those who don't pay.)
6. Who provides public goods? (governments)
7. How do governments pay for the provision of public goods? (collecting taxes)