Which of the following is an example of a common-pool good?

• A. National defense provided by the government
• B. A toll road that requires payment for access
• C. A public park that is open to everyone and can become overcrowded
• D. A private swimming pool in someone's backyard

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the definition of a common-pool good. A common-pool good is a type of good that is rivalrous but non-excludable. This means that one person's use of the good reduces the amount available for others (rivalrous), but it is difficult or impossible to exclude people from using it (non-excludable).
2. Step 2: Analyze each option based on the characteristics of common-pool goods. For example, national defense is non-rivalrous and non-excludable, so it is a public good, not a common-pool good.
3. Step 3: Consider the toll road option. Since it requires payment for access, it is excludable, so it does not fit the non-excludable criterion of common-pool goods.
4. Step 4: Evaluate the public park option. It is open to everyone (non-excludable), but can become overcrowded, meaning one person's use can reduce the enjoyment or availability for others (rivalrous). This matches the definition of a common-pool good.
5. Step 5: The private swimming pool is excludable and rivalrous, making it a private good, not a common-pool good.