Multiple Choice
Which of the following is an example of a government monopoly in the United States?
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8. The Types of Goods
Public Goods: Demand Curve and Optimal Quantity
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Which of the following is NOT considered a public good provided by the government?
A
Public parks
B
National defense
C
Street lighting
D
Private toll road
Verified step by step guidance1
Step 1: Understand the definition of a public good. A public good is characterized by two main features: non-excludability (people cannot be prevented from using it) and non-rivalry (one person's use does not reduce availability to others).
Step 2: Analyze each option to see if it meets the criteria of a public good. Public parks, national defense, and street lighting are typically non-excludable and non-rivalrous, meaning they are classic examples of public goods.
Step 3: Consider the private toll road. Since it requires payment (a toll) to use, it is excludable—people who do not pay can be prevented from using it. Also, its use can be rivalrous if congestion occurs.
Step 4: Conclude that the private toll road does not meet the criteria of a public good because it is both excludable and potentially rivalrous.
Step 5: Therefore, the private toll road is NOT considered a public good provided by the government, unlike the other options listed.
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