In the text we defined public goods as goods (or services) that are both non-rivalrous and non-excludable.

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In the text we defined public goods as goods (or services) that are both non-rivalrous and non-excludable. Yet in common language most people use the term “public goods” to refer to any good or service provided by the government.
a. For each of the goods or services listed below, explain whether they are public goods in the economists’ sense of the term, and why or why not.
• Heart surgery in a hospital
• Primary schooling for young children
• City bus transportation
• Public swimming pools

b. In each case, explain some reasons governments may choose to provide (or heavily subsidize) these products, even if they are not public goods.

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Microeconomics

ISBN: 9780137324644

17th Canadian Edition

Authors: Christopher T.S. Ragan

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