Why is national defense a public good?
I. It is expensive to produce.
II. People who don't pay for national defense still benefit from having it.
III. One person's benefit from national defense doesn't reduce anyone else's benefit from it.
IV. It is provided by the government.
A) I and IV only
B) II and III only
C) II, III, and IV only
D) I, II, and III only

Question

Quizplus · Accepted Answer

National defense is a public good because it is non-excludable (people who don't pay still benefit) and non-rivalrous (one person's benefit doesn't reduce others' benefits).

Why Is National Defense a Public Good