Which of the following is an example of a pure private good?
A) national defense
B) the Florida State Turnpike, a non-congested toll highway
C) Lake Erie
D) the Metropolitan Museum of Art in New York City
E) the new heat pump your neighbor bought for her house

Question

Quizplus · Accepted Answer

A pure private good is a good that is both excludable and rivalrous, meaning that access to the good can be restricted to those who pay for it and consumption of the good by one person reduces the amount available to others. Of the options given, the new heat pump your neighbor bought for her house is the only example that fits this description. National defense is a public good because it is non-excludable and non-rivalrous, meaning it is available to all and consumption by one person does not diminish its availability to others. The Florida State Turnpike may be excludable, but it is not rivalrous as the use of the highway by one person does not diminish its availability to others. Lake Erie and the Metropolitan Museum of Art are both non-excludable goods.

Which of the Following Is an Example of a Pure