(9) To determine what/how a community determines levels of public goods, we discussed the application of three theories (or principles) and how they interact with each other. Explain these three and using the concepts that we employed in our in-class exercise, provide a rationale for why the system we have works in defining what individuals are willing to pay for certain public goods. What are some of the inherent flaws with this system? (10) Government expenditures can be measured by examining the direct costs, as well as the results from the respective productions for direct outputs and consumer outputs. Please describe the relationship of production functions in analyzing the cost of government services. Using a public good or service that we've discussed, provide examples of inputs used in the services and the types of outputs that could be measured.