Which of the following is an example of Public Good?
Show answer & explanation
Correct answer: A
Explanation
Correct Answer:
Option 1: National defence
Explanation:
Public goods are those that are available to everyone, and whose consumption by one person does not affect their availability or utility for others.
National security is the best example of this because:
It is non-excludable (no one can be excluded from it).
It is non-rivalrous (one person's consumption does not affect another's).
In contrast, clothing, cars, and food items are private goods.
Potential Questions for Upcoming Exams:
Question: What is a private good?
Answer: A good for individual consumption.
Question: Who provides public goods?
Answer: The Government.
Question: Why are taxes collected?
Answer: To fund services.
Question: What is Economics?
Answer: The study of resources.