Name:
Date:
Understanding the Difference between Public and Private Goods
Task: log onto the website to complete the questions below…
http://reffonomics.com/TRB/chapter15/LightHouse1.swf
1. Explain whether you believe the lighthouse business was a good idea to begin with…why/why not?
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2. Describe the main reason(s) why the individual had to give up the lighthouse business.
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3. Explain the moral of the story using the concepts of public versus private goods.
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4. When deciding whether a good is public or private one must understand the concepts of excludable
and non-rivalrous. Define these two concepts.
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5. Complete the chart by indicating where each specific type of good belongs given the characteristics
presented below.
Excludable
Rivalrous
Non-Rivalrous
Non-Excludable
6. Complete the TEST YOUR KNOWLEDGE quick quiz at the end of the web quest.