Public goods:

Question

Public goods:

Quizplus · Accepted Answer

Public goods are goods that are non-excludable (meaning that once it is produced, it is impossible or impractical to exclude people from using it) and non-rivalrous (meaning that one person's use of the good does not diminish the quality or availability of the good for others). Examples of public goods include street lighting, national defense, and public parks. These goods can be consumed by more than one person at the same time, making choice A the correct answer. Choice B is incorrect because not all goods and services produced by the market are public goods. Choice C is incorrect because public goods do not necessarily lead to the pay-as-you-go problem, which is a problem of some public pension systems. Choice D is incorrect because while the government may produce some public goods, production by the government is not a requirement for a good to be considered public.

Public Goods