One reason that national defence is a classic example of a public good is that
A)all citizens want national defence.
B)society deems it to be too important to be provided by the private sector.
C)the benefits of national defence cannot be kept from those who do not pay.
D)military technology is too expensive for private firms to provide.
E)it would be immoral for private firms to provide this essential commodity.

Question

Quizplus · Accepted Answer

National defence is a classic example of a public good because its benefits cannot be excluded from individuals who do not contribute to its provision. This is known as the non-excludability characteristic of public goods. Even if someone chooses not to pay taxes or support the military, they still benefit from the protection provided by national defence. This makes it difficult for the private sector to provide national defence efficiently, as there is no incentive for individuals to pay for it if they can receive the benefits for free.

One Reason That National Defence Is a Classic Example of a Public