Table: Example GoodsA WatermelonA LighthouseSmog ReductionOnline Video GamesCable Internet ServiceNational DefenseA Private BeachA Public BeachA PencilSoup Kitchen MealsA ChairToll HighwaysPublic RoadsReference: Ref 18-2(Table: Example Goods) Refer to the table. Which of thefollowing contains only public goods from the table?

Question

Quizplus · Accepted Answer

A public good is defined as a good that is non-excludable and non-rivalrous in consumption. National defense, a lighthouse, and smog reduction are all examples of public goods from the table, as they are all goods that are difficult to exclude people from consuming and consumption by one person does not reduce the amount of that good available for others. Therefore, the only choice that contains only public goods is D, which includes national defense, a lighthouse, and smog reduction.