Multiple Choice
Which of the following statements about public goods is true?
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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 considered a public good?
A
Street lighting
B
National defense
C
Clean air
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: 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 based on these features. For example, street lighting is non-excludable and non-rivalrous because everyone benefits from it without reducing others' use.
Step 3: Consider national defense, which protects all citizens equally and cannot exclude anyone, making it a classic public good.
Step 4: Evaluate clean air, which is also non-excludable and non-rivalrous since everyone breathes the same air and one person's breathing does not reduce its availability to others.
Step 5: Identify the private swimming pool as NOT a public good because it is both excludable (access can be restricted) and rivalrous (one person's use can prevent others from using it).
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