There are some goods in the economy that are required by the public but are not profitable for the businesses. Businesses do not like to invest where profit is not there. Such goods are provided by the government to the people and are known as public goods. Public Goods are freely available to the public and generally have two major characteristics: The good is non rival in consumption i.e. your consumption does not affect my consumption neither it decreases my consumption nor it increases my consumption The good is non excludable i.e. you cannot refrain a person from using that good despite of whether he is paying or not paying for the good.
Cup of coffee at coffee shop is there property and you will have to pay for buying it. Hence, it is rival as well as excludable. It is a private good.
City fire protection is provided by the government and it is non rival and non excludable. Provided free of cost hence, it is a public good.
Polar Bears are a common resource a natural resource or wildlife you can say.
Clean Air is non rival and non excludable but not provided by government. Though government can take steps to ensure that air is not polluted by industries and firms.

1. Do corporate managers always act in the best interest of shareholders?
• The claim that managers can ignore the interests of shareholders is deduced from the fact that ownership in large corporations is widely dispersed. As a consequence, it is often claimed that individual shareholders cannot control management. There is some merit in this argument, but it is too simplistic.
The extent to which shareholders can control managers depends on (1) the costs of monitoring management, (2) the costs of implementing the control devices, and (3) the benefits of control.
When a conflict of interest exists between management and shareholders, who wins? Does management or do the shareholders control the firm? There is no doubt and that ownership in large corporations is diffuse when compared to the closely held corporation. However, several control devices used by shareholders tie management to the self-interest of shareholders.

2. Research and present one CEO (Chief Executive Officer) pay package. Does this CEO earn more money if the company performs well? What penalty does the CEO receive if the company does not perform well?
• In most cases, CEO's receive huge bonuses for good performance. A lot of times their salary is not very much and they are mainly paid through their bonuses in an effort to avoid taxes from the IRS. If the company does not do as well, the CEO is not penalized but sometimes will not receive as big of a bonus. They will always normally receive at least a 6 figure bonus. In this case, we are considering a company such as Microsoft.