Which example is considered a public good?
A) school attendance
B) national defence
C) cigarettes
D) a flu shot

Question

Quizplus · Accepted Answer

National defence is considered a public good because it is non-excludable (one cannot exclude individuals from the benefits of national defence) and non-rivalrous (one's consumption of national defence does not reduce another's consumption).

A, C, and D are not public goods. School attendance is a private good because it is excludable and rivalrous - one has to pay fees to attend school and one student's attendance can limit the attendance of another. Cigarettes are a private bad, and their consumption has negative effects on others' well-being. A flu shot is a semi-public good because it is excludable but non-rivalrous - once someone has received a flu shot, others can still receive it, but they have to pay for their own shot.

Which Example Is Considered a Public Good