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

• A. A public park open to everyone without restrictions
• B. A loaf of bread sold in a grocery store
• C. A private swimming pool in a gym that requires membership
• D. National defense services

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the definition of a toll good. A toll good is a type of good that is non-rivalrous but excludable. This means that one person's consumption does not reduce availability to others (non-rivalrous), but people can be prevented from using it if they do not pay (excludable).
2. Step 2: Analyze each option based on the characteristics of toll goods. For example, a public park open to everyone is non-excludable and non-rivalrous, so it is a public good, not a toll good.
3. Step 3: Consider the loaf of bread sold in a grocery store. Bread is rivalrous (one person eating it means another cannot) and excludable (you must pay to get it), so it is a private good, not a toll good.
4. Step 4: Look at the private swimming pool in a gym that requires membership. It is excludable because only members can use it, and it is non-rivalrous up to a point (one member using the pool does not necessarily prevent others from using it simultaneously), fitting the definition of a toll good.
5. Step 5: National defense services are non-excludable and non-rivalrous, making them a classic example of a public good, not a toll good.