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LESSON: TRASHY TOWN
Lesson
Summary
Follow
Mr. Gilly around town as he performs a valuable service - picking up trash
from people in his community. What excellent work he does!
Concept: Goods and Services (focus on
public goods and services)
Definition: A good is an object people want
that they can touch or hold. A service is an action that a
person does for someone else.
A
public good or service is provided by government
using taxes collected from citizens. An example of a public
service provided by the federal government is national defense.
Public services often provided by local and state governments are roads,
police and fire protection, and education. Certain services, such as
water and trash collection, can be provided by government or by private
companies.
Comprehension Questions:
What is
the difference between a good and a service? Both are things people
want; however, a good is something you can touch. A service is
something someone does for you.
In the
story, what did Mr. Gilly provide a good or a service?
Explain. He provided the service of trash collection. He did
something for people; in his work he did not produce a tangible
product.
Do you
think Mr. Gilly gets paid for providing this service? Yes.
The story doesnt say it, but it is evident that he is working for a local
government or company. It takes a lot of his time and he must earn
income to provide for him and his family.
Does
Mr. Gilly work for the city or for a private company? You cant
really tell from the story. Trash collection is a service provided
by both government entities as well as by private companies.
Do you
think that people have to pay Mr. Gilly for collecting their
trash? Yes! Regardless of whether Mr. Gilly works for
the city or for a private company, he provides a scarce and valuable
service that people must pay to receive. If Mr. Gilly works for the
city, the city might charge customers directly for the service or collect
taxes.
When
people pay Mr. Gilly for collecting their trash, who benefits Mr. Gilly,
the person paying Mr. Gilly, or both? Both! Both parties
benefit from such a transaction. People get their trash removed and
Mr. Gilly earns income.
What
large capital resource does Mr. Gilly need to provide his trash collection
service? His garbage truck!
Where
does Mr. Gilly take his trash? He takes it to a dump
(landfill).
Do you
think Mr. Gilly must pay to put his trash in the dump? The story
doesnt say, but dump space is scarce and valuable, too, so Mr. Gilly must
pay a fee (tipping fee) to put trash in the dump. He must collect
enough money from customers to cover the cost of this tipping
fee. |