Multiple Choice
Which of the following best defines a common market in the context of microeconomics?
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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 an example of a public good?
A
National defense
B
Street lighting
C
A city park open to all
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: 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 based on these characteristics. For example, national defense is non-excludable and non-rivalrous, so it is a public good.
Step 3: Consider street lighting and a city park open to all. Both are generally non-excludable and non-rivalrous, fitting the public good criteria.
Step 4: Examine the toll road. Since users can be excluded by charging a toll, it is excludable, which means it does not meet the criteria for a public good.
Step 5: Conclude that the toll road is NOT an example of a public good because it is excludable, unlike the other options.
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