Open Question
Label the goods as Private Goods (PRI), Common Resources (CR), Club Goods (CG), or Public Goods (PUB).
322
views
1
rank
8. The Types of Goods
Four Types of Goods and Two Characteristics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is an example of a public good?
A
Cable television
B
A slice of pizza
C
National defense
D
A 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 against these criteria. For example, cable television is excludable because you need a subscription, so it is not a public good.
Step 3: Consider a slice of pizza, which is rivalrous and excludable because if one person eats it, others cannot, so it is a private good.
Step 4: Evaluate a toll road, which is excludable because you must pay to use it, so it is not a public good.
Step 5: Recognize that national defense is non-excludable and non-rivalrous, as it protects all citizens regardless of individual payment or usage, making it a classic example of a public good.
5:02mWatch next
Master Two Characteristics:Rivalry in Consumption and Excludability with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Four Types of Goods and Two Characteristics practice set
Problem sets built by lead tutorsExpert video explanations