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 that accrue to one person do not diminish the benefits available to others.
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 it is non-excludable and non-rivalrous in consumption, which means that the benefits available to one person do not diminish the benefits available to others. For example, one person's protection from external threats does not prevent others from enjoying the same protection. This is why national defence is best provided by the government, as it can ensure that all citizens have access to the same level of protection.

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