PUA 5305
Unit II Essay
Columbia Southern University
Public Finance and Budgeting
PUA 5305
Public Goods
Public goods refers to goods or services that are made available to all members of a
society. Typically, these services are administered by governments and paid for collectively
through taxation (Fernando, 2020). It is through the taxation of the members of society that a
relationship between citizens and government is made to supply goods and services. The two
features of public goods is that they are non-rivalrous and non-excludable. Non-rivalrous
essentially means that the goods do not diminish in supply as people consume them
(Fernando, 2020). Non-excludability means that the goods are available to all citizens
whether they pay for the goods or not.
Examples of Public Goods
National defense is an example of public goods. Citizens pay taxes for the development
and maintenance of a standing military force. National defense is provided to all citizens
whether individual pay for it or not, and the service is not diminished when national defense is
used. To the extent one person in a geographic area is defended from foreign attack or invasion,
other people in that same area are defended also (Cowen, n.d.). Further, national defense also
provides an example of a good that is non- rivalrous. One individual’s protection does not
prevent another individual from receiving protection.
Another example of public goods is public education. Citizens pay taxes that fund public
education. Public education meets the criteria of a public good in that it is non-rivalrous and
Unit II Essay
Columbia Southern University
Public Finance and Budgeting
PUA 5305
Public Goods
Public goods refers to goods or services that are made available to all members of a
society. Typically, these services are administered by governments and paid for collectively
through taxation (Fernando, 2020). It is through the taxation of the members of society that a
relationship between citizens and government is made to supply goods and services. The two
features of public goods is that they are non-rivalrous and non-excludable. Non-rivalrous
essentially means that the goods do not diminish in supply as people consume them
(Fernando, 2020). Non-excludability means that the goods are available to all citizens
whether they pay for the goods or not.
Examples of Public Goods
National defense is an example of public goods. Citizens pay taxes for the development
and maintenance of a standing military force. National defense is provided to all citizens
whether individual pay for it or not, and the service is not diminished when national defense is
used. To the extent one person in a geographic area is defended from foreign attack or invasion,
other people in that same area are defended also (Cowen, n.d.). Further, national defense also
provides an example of a good that is non- rivalrous. One individual’s protection does not
prevent another individual from receiving protection.
Another example of public goods is public education. Citizens pay taxes that fund public
education. Public education meets the criteria of a public good in that it is non-rivalrous and
