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Eduncle posted an MCQ
October 17, 2019 • 21:36 pm 0 points
  • UGC NET
  • Economics

Which of the following is an example of a public good?

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    Eduncle Best Answer

    Public goods have the following two consumption characteristics: they are nonexcludable and they are non-rival. Non-excludability means that once the product is produced, it is impossible to prevent people from consuming it. Non-rivalry means that many people can consume the produced product without diminishing its usefulness to others. 
    National Defence is the public good. It is a public good because, once provided, (1) it is difficult to exclude people within the country from the safety and security generated and (2) multiple individuals can enjoy the added safety and security without limiting that received by others.

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