Multiple Choice
Which of the following is an element of the free-rider problem associated with a public good?
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8. The Types of Goods
The Free Rider Problem and the Tragedy of the Commons
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Which of the following is an example of a public good?
A
A restaurant meal
B
A toll road
C
National defense
D
A private swimming pool
Verified step by step guidance1
Step 1: Understand the definition of a public good. A public good is characterized by two main features: it is non-excludable (people cannot be prevented from using it) and non-rivalrous (one person's use does not reduce availability to others).
Step 2: Analyze each option against these criteria. For example, a restaurant meal is excludable and rivalrous because only paying customers can consume it, and one person's meal reduces availability for others.
Step 3: Consider a toll road. It is excludable because users must pay a toll, and it can be rivalrous if congestion occurs, reducing the quality of use for others.
Step 4: Evaluate a private swimming pool. It is excludable and rivalrous since only the owner or invited guests can use it, and usage by one person can limit others' use.
Step 5: Examine national defense. It is non-excludable because everyone in the country benefits regardless of payment, and non-rivalrous because one person's protection does not reduce protection for others, making it a classic example of a public good.
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