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Unformatted text preview: standpoint of society as a whole a. The Different Kinds of Goods Define public goods and common resources and give an example of each. b. Public Goods a. The Free-Rider Problem b. Some Important Public Goods i. National Defense ii. Basic Research iii. Fighting Poverty c. The Difficult Job of Cost-Benefit Analysis What is the free-rider problem? Why does the free-rider problem induce the government to provide public goods? How should the government decide whether to provide a public good? c. Common Resources a. The Tragedy of the Commons b. Some Important Common Resources March 6, 2008 i. Clean Air and Water ii. Congested Roads iii. Fish, Whales, and Other Wildlife Why do governments try to limit the use of common resources?...
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