Exhibit 16.2

-Refer to Exhibit 16.2.In Box 1,an example of traditional public-goods legislation is that for _____

Question

Exhibit 16.2
 
-Refer to Exhibit 16.2.In Box 1,an example of traditional public-goods legislation is that for _____

Quizplus · Accepted Answer

National defense is an example of traditional public-goods legislation, as it is a good that is non-excludable and non-rivalrous, meaning that it is difficult to exclude anyone from its benefits and one person's use of it does not detract from another's use. This creates a free-rider problem, where people may be inclined to benefit from national defense without contributing to its provision. Therefore, government intervention is necessary to provide and fund national defense, making it a traditional public good. The other options listed do not fit the characteristics of a traditional public good.

Exhibit 16.2 -Refer to Exhibit 16.2.In Box 1,an Example of Traditional Public-Goods