A public good
A) can be proﬁtably produced by private ﬁrms.
B) is characterized by rivalry and excludability.
C) produces no positive or negative externalities.
D) is available to all and cannot be denied to anyone.

Question

Quizplus · Accepted Answer

A public good is a type of good that is available to all individuals and cannot be denied to anyone. Examples of public goods include street lighting and national defense. Public goods are non-excludable, meaning that once they are provided, individuals cannot be excluded from using them, and are non-rival, meaning that one person's use of the good does not reduce its availability to others. Since private firms cannot exclude people from using public goods or restrict access to them, public goods cannot be proﬁtably produced by private ﬁrms. Public goods can also produce positive or negative externalities, such as reducing crime rates, but the presence of externalities is not necessary for a good to be considered a public good.

A Public Good