21. Provide two examples of goods/services that are classified as private goods/services even though they are

provided by a federal government.

22. Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are

nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street

lights and light houses but not radio stations (other than PBS stations)?
324 13 • Problems

Problems

23. HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow

HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However,

redesigning the cabin means rethinking many other elements of the airplane as well, like engine and

luggage placement and the most efficient shape of the plane for moving through the air. HighFlyer Airlines

has developed a list of possible methods to increase cabin space, along with estimates of how these
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